If you know when you are going to need your money, Fidelity's WealthBuilder Target funds could be for you. Our funds have three target dates - 2010, 2015 and 2020. Our
illustrator tool will help you calculate how much you'll need to invest to reach your goal so you know which fund to choose.
Initially, WealthBuilder invests mainly in UK and overseas equity funds. As the target date approaches, we move your assets into more secure investments, such as bonds. This helps reduce exposure to risk. Finally, we hold a significant portion of the fund in cash to help protect your final lump sum.
WealthBuilder Target funds are "fund of funds", where the portfolio manager chooses which funds to hold within each portfolio from over 90 funds in the Fidelity range.
Fidelity's WealthBuilder range
WealthBuilder Target 2010 Fund
For the first two or three years this fund invests primarily in equity holdings. The focus will change to lower-risk bond and cash holdings, which gradually account for a greater proportion of the fund, culminating at around 90%.
WealthBuilder Target 2015 fund
This fund invests a proportion in bonds, but more than half of the portfolio will be in equities. As the fund nears its target date these equity holdings will gradually be reduced in favour of bond and cash investments, reducing risk.
WealthBuilder Target 2020 fund
This invests heavily in equities to maximise growth potential. The move into lower-risk holdings starts slowly, but carries on throughout the fund's life, so that by the target date around 90% of the fund will be invested in bonds and cash.
T
he value of the fund can go down as well as up so you may get back less than you invested. As these funds invest overseas, the return may increase or decrease as a result of currency fluctuations.
