FREEDOM FUNDS
Fidelity Freedom Income Fund
Fidelity Freedom 2000 Fund
Fidelity Freedom 2010 Fund
Fidelity Freedom 2020 Fund
Fidelity Freedom 2030 Fund
Fidelity Freedom 2040 Fund
Fidelity Freedom Fund®
what they are:
The Fidelity Freedom Funds are designed for investors who want a simple approach to investing for retirement by investing in a group of other Fidelity mutual funds that provide moderate asset allocation. The allocation strategy among the underlying stock, bond, and money market mutual funds contained in each Freedom Fund with a target retirement date, is based on the number of years until the fund’s target retirement date. The funds with a target date will gradually adopt a more conservative asset allocation over time, and therefore their target asset allocation percentages will change to become more conservative. The Freedom Income Fund, designed for those already in retirement, emphasizes bond and money market mutual funds and seeks to maintain a stable asset allocation from year to year.goal: The Freedom Funds with target retirement dates seek to provide high total returns. The goal of the Freedom Income Fund is to seek high current income and, secondarily, capital appreciation.
what they invest in: Each Freedom Fund invests in a combination of underlying Fidelity stock, bond, and money market mutual funds. Fidelity Freedom 2040, with the longest time horizon, invests primarily in stock mutual funds to take advantage of potentially greater growth opportunities. The asset mix of each Freedom Fund with a retirement horizon (Freedom 2040, 2030, 2020, 2010, 2000) will gradually become more conservative over time so investors can stay with the same fund before and after retirement. After reaching the target retirement horizon year, these Freedom Funds continue to be managed more conservatively for 5-10 more years until their asset mix is approximately the same as Freedom Income Fund. Ultimately, the funds will merge. Fidelity Freedom Income Fund, designed for those already retired, is invested more conservatively with a larger percentage in bond and money market funds and has a smaller percentage of equity mutual funds. The Fund Managers must invest in the group of specified underlying funds found in the prospectus and will aim for the projected target asset allocation percentages announced in the fund’s annual and semi-annual reports. Share price and return of each fund will vary.
*The percentages represent anticipated target asset allocation at March 31, 2001.
who might want to invest: Someone who desires a simple way to invest for retirement. Someone who wishes to take advantage of the diversification and asset allocation strategy contained in each Freedom Fund and the ongoing professional management which will gradually adopt a more conservative asset allocation over time. Someone who feels comfortable with the risk of equity mutual funds when one is further from retirement and a greater concentration of bond and money market mutual funds when one is closer to or in retirement.
Fidelity Freedom Income Fund
Fund Code: 0369
what it is: An asset allocation mutual fund.
goal: Seeks to provide high current income and, as a secondary objective, some capital appreciation for those already in retirement.
what it invests in:Approximately 20% in Fidelity stock mutual funds. Approximately 40% in Fidelity bond mutual funds. Approximately 40% in Fidelity money market mutual funds. The percentages represent anticipated target asset allocation at March 31, 2001.
Strategic Advisers, Inc., an affiliate of Fidelity Management & Research Co., manages the Fidelity Freedom Funds®.
Fund Code: 0370
what it is: An asset allocation mutual fund.
goal: Seeks to provide high total returns for those planning to retire around 2000.
what it invests in: Approximately 29% in Fidelity stock mutual funds. Approximately 43% in Fidelity bond mutual funds. Approximately 28% in Fidelity money market mutual funds. The mix of underlying funds will gradually become more conservative over time. The percentages represent anticipated target asset allocation at March 31, 2001.
Strategic Advisers, Inc., an affiliate of Fidelity Management & Research Co., manages the Fidelity Freedom Funds®.
Fund Code: 0371
what it is: An asset allocation mutual fund.
goal: Seeks to provide high total returns for those planning to retire around 2010.
what it invests in: Approximately 49% in Fidelity stock mutual funds. Approximately 43% in Fidelity bond mutual funds. The mix of underlying funds will gradually become more conservative over time. Approximately 8% in Fidelity money market mutual funds. The percentages represent anticipated target asset allocation at March 31, 2001.
Strategic Advisers, Inc., an affiliate of Fidelity Management & Research Co., manages the Fidelity Freedom Fund®.
Fund Code: 0372
what it is: An asset allocation mutual fund.
goal: Seeks to provide high total returns for those planning to retire around 2020.
what it invests in: Approximately 72% in Fidelity stock mutual funds. Approximately 28% in Fidelity bond mutual funds. The mix of underlying funds will gradually become more conservative over time. The percentages represent anticipated target asset allocation at March 31, 2001.
Strategic Advisers, Inc., an affiliate of Fidelity Management & Research Co., manages the Fidelity Freedom Funds®.
Fund Code: 0373
what it is: An asset allocation mutual fund.
goal: Seeks to provide high total returns for those planning to retire around 2030.
what it invests in:
Approximately 83% in Fidelity stock mutual funds. Approximately 17% in Fidelity bond mutual funds. The mix of underlying funds will gradually become more conservative over time. The percentages represent anticipated target asset allocation at March 31, 2001.Strategic Advisers, Inc., an affiliate of Fidelity Management & Research Co., manages the Fidelity Freedom Fund®.
Fund Code: 00718
what it is: An asset allocation mutual fund. An asset allocation mutual fund.
goal: Seeks to provide high total returns for those planning to retire around 2040.
what it invests in:
Approximately 90% in Fidelity stock mutual funds. Approximately 10% in Fidelity bond mutual funds. The mix of underlying funds will gradually become more conservative over time. The percentages represent anticipated target asset allocation at March 31. 2001.Strategic Advisers, Inc., an affiliate of Fidelity Management & Research Co., manages the Fidelity Freedom Fund®.