Should You Buy Fidelity Investment Funds?

How do you choose the funds in your investment portfolio? Do you choose funds from many different families, or, for the sake of convenience, have you contained your investments to just one fund family? This article will examine some of the stock funds that Fidelity has to offer to see if all of your financial needs can be met using just this one fund family.

If you're like most investors, you will want a variety of different stock funds to choose from. Fidelity offers more than one hundred different stock investment funds, including the Fidelity Select family, which consists of more than 40 different funds in itself. Most of the funds are domestic sector funds meaning that they are the stocks of companies in one certain industry or sector. Unlike many other exchange traded funds, Fidelity's domestic sector funds are actively managed. Due to this fact, you can end up with above-average returns.

Many momentum investors favor sector funds, because even though the market is on a down trend, sector funds will manage to hang on. A good example of this happened in 2002 in the middle of the last bear market. All the major market indices had fallen at least 10%, yet Fidelity still had funds that were up for the year.

If just including sector funds doesn't provide enough diversification, you can also look at Fidelity's numerous international funds. They offer regional funds, such as Latin America and the Pacific Basin, as well as many single country funds including China, Japan, and Germany.

Fidelity also has a large number of fixed income funds including money market funds, municipal bond funds, government bond funds, and long-term corporate bond funds. In fact, they offer something for every investor looking for fixed income investments.

If you happen to be looking for an easier type of investment, you might try either Fidelity's Freedom funds or Asset Manager funds. Since both of these funds will take over the job of asset allocation for you, you just have to sit back and watch your money grow.

If you still haven't found just what you're looking for after examining all of the funds listed above, you might decide to buy one of Fidelity's several thousand mutual funds. These funds are part of the no transaction fee program. With most of these funds, all you have to do is hold them for a specified period of time, and then they can be traded without fees.

In our discussion of the various funds offered by Fidelity, we haven't even touched on a great many services they offer such as retirement accounts, college savings plans, insurance, and annuities. Once you take a look at everything Fidelity has to offer, you may decide you've found everything you want for your investment needs all in one neat package.

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