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Fidelity’s Mutual Fund:

Rock Your Socks with FZROX 

 

What’s the first thing you think of when you hear the term “mutual fund”? Do you picture a group of stuffy people in suits sitting around a long table in a boardroom? What if we told you mutual funds were for everyday people? Let’s get the lowdown on Fidelity Mutual Funds to help you with your next investment decision.

What Are Mutual Funds?

Let’s first discuss what exactly a mutual fund is. Mutual funds pool money from many different investors. The money is then used to make purchases on stocks, bonds, and securities. The investors will all share in the profits and losses of the fund. Some of the bigger perks of a mutual fund is their lower costs, lower risks, and diversification.

Typically, mutual funds are classified by their principal investments: bond or fixed income funds, money market funds, stock or equity funds or hybrid funds.

Fidelity Mutual Funds

With $11.8 trillion in assets under management, Fidelity Investments, Inc is one of the largest asset managers in the world. The company was established in 1946. Back in the 1960s, Fidelity began marketing mutual funds to regular, everyday people, making it the first major American finance firm to do so.

Fidelity ZERO Total Market Index Fund (FZROX)

One of the first funds in Fidelity’s line of zero-expense-ratio mutual funds, FZROX is a great choice for investors. Introduced in 2018, FZROX, along with the ZERO International Index Fund has grown to more than $1 billion in assets.

This fund features a 0% expense ratio and no minimum to invest. The fund tracks the market with no expansive growth or loss. It holds steady right in the middle. With steady growth over time, FZROX has the potential to bring an annual return of 9-10%. Risks are fairly low; if there’s a market crash, you can expect a dip in the fund, but no major losses. 

The fund holds over the top 3,000 names in stocks with the largest holdings in big names Apple, Microsoft, Amazon and Tesla. 

FZROX takes its dividends and reinvests them internally to the fund throughout the year. The growth is reflected in the share price. Dividends are typically paid out once a year in December. The only potential downside to investing in this fund is the fact that you can only buy and trade it through the Fidelity platform. Of course, if you already have a Fidelity account, this is no issue for you. If you don’t currently have a Fidelity account, it’s simple to open one.

In Summary

Investing in FZROX will likely bring you a nice return over time with minimal risks. It is essentially a free way to invest and gain traction in the investment world. Fidelity is a veteran company with solid roots and there’s no chance this company is going anywhere any time soon. 

To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.

 

FJS

Author FJS

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