Fidelity Mutual Fund Quote

Most reasonable investors view market volatility as an opportunity to invest at a favorable price or to sell short against a bearish trend. Fidelity Freedom's investment highlights are automatically generated signals that are significant enough to either complement your investing judgment regarding Fidelity Freedom or challenge it. These highlights can help you better understand the position you are entering and avoid costly mistakes.

Investors will always prefer to have their portfolios divercified against different sectors. The broad sector allocation increases the possibility of making a profit or at least avoiding a loss. However, this may also reduce the expected return on Fidelity Mutual Fund. Generally, it depends on diversification level and type but usually, the broader the sector allocation, the less risk can be expected from holding Fidelity Mutual Fund, and the less return is expected.

Institutional investors that are interested in enforcing a sector tilt in their portfolio can use exchange-traded funds, such as Fidelity Freedom Index Mutual Fund, as a low-cost alternative to building a custom portfolio. So, using sector ETFs to diversify your portfolio can be a profitable strategy. However, no matter what sectors are desirable at a given time, no single industry should ever make up more than 20 percent of your stock portfolio.

Based on a normal probability distribution, the odds of Fidelity Freedom jumping above the current price in 90 days from now is about 14.08%. The Fidelity Freedom Index probability density function shows the probability of Fidelity Freedom mutual fund to fall within a particular range of prices over 90 days. Assuming the 90 days horizon Fidelity Freedom has a beta of 0.1598. This usually indicates as returns on the market go up, Fidelity Freedom average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Fidelity Freedom Index will be expected to be much smaller as well. Additionally, the company has an alpha of 0.0293, implying that it can generate a 0.0293 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).

Investors will always prefer to have the highest possible return on investment while minimizing volatility. Fidelity Freedom market risk premium is the additional return an investor will receive from holding Fidelity Freedom long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Fidelity Freedom. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Although Fidelity Freedom's alpha and beta are two of the key measurements used to evaluate Fidelity Freedom's performance over the market, the standard measures of volatility play an important role as well.