Our Model Portfolios

Fidelity Investor’s models have 6/30/2014 year-to-date returns of between 5.9% and 7.7%. The average investor in Fidelity funds gained 1.6% in June.

Jim's Models

Global Quant
2014% Ann. 5Yr%
5.9 18.7
Aggressive Growth
2014% Ann. 5Yr%
7.5 18.0
Income
2014% Ann. 5Yr%
6.0 14.1
Growth & Income
2014% Ann. 5Yr%
7.2 16.1
Growth
2014% Ann. 5Yr%
7.7 18.0

Compare

Fidelity Index
2014% Ann. 5Yr%
4.1 10.2
S&P 500
2014% Ann. 5Yr%
7.1 18.8
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FAQ

Got a question about our services? Check out the questions and answers listed below and chances are you'll be able to find what you're looking for right here. And, of course, if you have a question that you still can't find a response for, please e-mail or telephone us. Our address is at the bottom of this page, so please let us know what your questions and comments are.

I didn’t receive my weekly email hotline. What do I do?

The first thing to do is to click on the Contact link above and send us an email. We can confirm that your membership is current and that we have the correct email address. Then, add our email address to your address book: members@fidelityinvestor.com. This will whitelist our email address. Be sure to also check the spam or junk mail folder in your email browser. If you find the hotline there, select it and then click the "not spam" button in your email browser. Occasionally a member will accidentally click the "unsubscribe" link at the end of the hotline or click on the "report spam" button in their email browser. If this happens, open up a recent hotline and click on the "manage subscriptions" link at the end of the email to be resubscribed to the hotlines. You can also obtain the hotline by logging into your account and clicking on the Hotline link, or by phoning 617-984-0543 to listen to the recorded hotline.

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How do I avoid Fidelity's Roundtrip penalties?

Fidelity discourages excessive trading by mutual fund investors. They identify excessive trading by monitoring roundtrip transactions. A roundtrip transaction occurs when an investor purchases a mutual fund and then sells the same fund within 30 calendar days. The first time this occurs, Fidelity sends out a warning letter that outlines the policy. If a roundtrip purchase occurs a 2nd time within 90 days of the first, an 85-day block will be placed on that fund preventing additional purchases into or out of that fund. Investors with four roundtrip transactions in the same account across all Fidelity funds within a rolling 12-month period will be blocked from making additional purchases and exchange purchases into any Fidelity Fund (other than Fidelity money market funds) for 85 days. This block will be applied to all accounts under the same social security number. As with avoiding short-term redemption fees, waiting until the end of the 30 calendar day period to make a trade is reasonable if it helps to avoid falling afoul of the roundtrip policy.

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I will incur an early redemption fee on a specific fund if I make the trade that was recommended in the hotline. Should I go ahead and incur the fee, or should I wait?

A Short-Term Redemption Fee is charged when money is withdrawn from a fund within a specified time period, usually 30 to 90 days. Not all funds have short-term redemption fees. You can find this information in the fund’s prospectus. When we sell in and out of funds in the model portfolios, we’re always cognizant of redemption fees and tax consequences but, in the end, let the investment decision rule the call. However, holding onto a fund until the redemption period expires in order to avoid the fee, especially if that fund’s redemption period is 30 days or less, is perfectly reasonable.

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I'm new to investing. How do I get started with the Fidelity Investor model portfolios?

The best way to get started is to look at pages 2 and 3 of the newsletter and choose the portfolio you are going to follow and jump right in and purchase the funds listed in the percentages listed. Since Fidelity sets the minimum fund purchase at $2500, some people find funding a model portfolio that contains more than a few different funds to be daunting. If this is the case for you, pick one fund from the model portfolio of your choice and start with that. Then you can move on to the next fund, etc.

 

Here's an example of a hypothetical portfolio (these are NOT the actual funds):


The month that you start, suppose the plan holds:

21% in Fidelity Blue Chip Growth
16% in Fidelity Fifty
15% in Fidelity New Markets Income
14% in Fidelity Value
12% in Fidelity Select Healthcare
11% in Fidelity Cash Reserves
11% in Fidelity Emerging Markets

 

NOTE: If you are starting this plan with close to the minimums for each fund, this could affect the total dollars that you will have to commit to the plan. In the example above, if you were using your retirement account dollars to follow the allocation (minimums for each fund of $2,500), the 11% smallest allocation to Fidelity Emerging Markets would have to be the minimum $2,500. Percentages allocated for each the other funds would follow in the same fashion with your investment totaling $22,727 in all seven funds (well above the $17,500 for equal portions of each of seven funds).
 

This is how you figure out percentage and dollar amounts. If you have $25,000 to invest, using the example above, you'd use this formula to calculate the dollar amount for Blue Chip Growth: $25,000 x 21% = the amount to invest (or 25,000 x 0.21 = 5,250). So you'd invest $5,250 of the $25,000 in Blue Chip Growth. Use the same formula for each different percentage amount to determine the dollars to invest in each fund. For the smallest percentage: 25,000 x 0.11 = 2,750 so you'd invest $2,750 in Emerging Markets (and Cash Reserves since both make up 11% of the portfolio).

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Why do you recommend a fund as a Best Buy but do not include it in your model portfolios?

On the back page of each newsletter issue you will find Jim’s Best Buys. Best Buys are really strategic selections, often dissimilar to holdings found in our model portfolios and best used by members who are not following one of the models and are looking to add value to their own hybrid, personalized portfolio.

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How do I change my password or username?

You can change your username and password by logging in and clicking on the “edit Profile link that appears under your name on the right hand side. On the profile page there is a link on the left hand side that says “username/Password.” Click on the link and make your changes and click Submit.

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What are the general guidelines for the model portfolios?

The newsletter's model portfolios are there as guideposts, reflect their risk profile, and are meant to serve as a core portfolio. The basics of each portfolio are as follows: Aggressive Growth and Global Quant are designed for active traders; Growth for long-term investors with10 or more years to go before they'll need the money; Growth & Income for those with 5 or more years to go before they retire; Income for near- or already in-retirement members.

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Who operates Fidelity Investor?

Fidelity Investor is published by FundWorks, Inc., a publisher specializing in publications that provide thousands of readers with independent investment advice and award winning financial leadership.

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What is the Fidelity Investor newsletter?

Fidelity Investor is an multiple award winning, independent investment advisory service helping investors use the Fidelity family of mutual funds to meet financial goals. Editor-in-Chief Jim Lowell, the leading expert on investing at Fidelity, gives members objective and unbiased recommendations on Fidelity funds. The Fidelity Investor is not affiliated in any manner with, and is completely independent of, Fidelity Investments.

 

Our service includes a monthly newsletter covering each and every one of Fidelity’s retail mutual funds with specific buy, hold, sell recommendations plus performance returns to show you how well (or, how badly) your Fidelity fund has performed. We’ll fill you in on the best Fidelity funds to be invested in and which funds you should strongly avoid. Members also have a choice of five easy-to-follow models using only Fidelity funds to formulate a personal investment strategy, whether you’re a conservative, moderate or aggressive investor.

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What makes Fidelity Investments a great place to invest my money?

Fidelity Investments has long been a leader in providing high-quality financial instruments to American investors. Ned Johnson III, founder of Fidelity, started out managing Fidelity's flagship Magellan fund and slowly built up what 50 years later is the largest private fund company, with over $900 billion dollars in managed assets.

If you are investing at Fidelity, you already know the maxim "bigger is better" has never been more applicable. Fidelity's extraordinary resources enable the company to pass on wonderful benefits to Fidelity investors, including talented fund mangaers, great fund performance, and a comprehensive one-stop shop for terrific funds in all categories.

Fidelity management has always prided themselves on investing in only the best technology for their employees and investors. Once again, they've proven themselves as a technological leader with a comprehensive web site boasting easy investor access to personal accounts and trading abilities.

And because of their huge size, Fidelity commands a powerful respect in the financial world; the boards of directors of multinational blue-chip companies, many of which won't give smaller financial outfits the time of day, strive to maintain good relationships with Fidelity's stock-picking analysts and researchers.

With so many funds, and fund companies, to choose from, how can investing with Fidelity make my financial life simpler?

Fund investors wisely choose Fidelity to house their investments because no matter what you're investment style, you'll find what you're looking for under one roof. In addition to brokerage services, Fidelity offers exceptional growth-oriented as well as great international funds and, recently, they've created a selection of index funds; you can find what you're looking for and get the added benefit of consolidated statements to make your investing life even easier. Fidelity also offers 24-hours-a-day superior customer service, so no matter how hectic your personal life is, you can attend to your funds whenever it's convenient for you.

As with everything, however, there's always room for improvement. That's where Fidelity Investor steps in because, as with most fund companies, Fidelity has winning funds and funds you should steer clear of. Fidelity, despite a multitude of talented, "home grown" portfolio fund managers, has been known to play "musical chairs" with managers, and will not tell you when a talented strategist leaves a fund, and leaves you in the lurch. But we will. Fidelity advertises funds that they want you to know about, not always the fund that's best for you.

Fidelity will also never warn you to sell a fund if the market takes a severe downturn, but we will. And we'll also fill you in on many other "behind the scenes" secrets of successful investing at Fidelity to save you tax expenses, hidden fees and hopefully some sleepless nights too.

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Who is Jim Lowell?

Mr. Lowell (bio) is the Boston-based Editor-in-Chief of Fidelity Investor. A graduate of Vassar College and Harvard University, Mr. Lowell's path to becoming the country's premier "Fidelity insider" started when he worked as a senior financial reporter for Fidelity Investments.

Today, in addition to his role as Editor-in-Chief of Fidelity Investor, he is the Chief investment Officer for Adviser Investments, Inc., a private Newton, MA money management firm (no affiliation with Fidelity Investor) as well as the writer of several investment books -- How to Survive in the Real World, published by Penguin USA, 1996, Investing From Scratch, Penguin USA, 1997, Smart Money Moves Penguin USA, 1999, and What Every Fidelity Investor Needs to Know, Wiley, 2006.

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How long has Fidelity Investor been published?

Since January 1998.

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Why can't I get the reports I want to print out?

All computer systems are different. The most common reasons why computer users have problems printing are not enough memory on your hard drive or the wrong "plug-in" to have access to the past issues (we have the Adobe reader available to download to obtain past issues if you are a current member). The fastest way to resolve any computer problem you are experiencing is to contact your computer company's customer service department. If you are still not able to obtain access to our web site or reports, please contact us at the address below (if using our e-mail service, please be sure to include your e-mail and/or mailing address) and we will respond to your questions, thoughts and comments about this site and your experiences with Fidelity Investments and our advisory service.

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