Fidelity Personal Investing is focused on guiding our customers to better investment outcomes. We live by the mantra: Making Good Investing Easy.
That’s the thinking behind the launch of the Select 50 Balanced Fund, a one-stop investment that makes it easier than ever to tap into the expertise behind our popular Select 50 ‘best buy’ list.
Building on the Select 50
We relaunched the Select 50 fund list in July 2016. It is a popular source of investment ideas for our customers, especially for more-engaged investors who like to choose their own funds but who also welcome some guidance from Fidelity’s expert fund selectors.
You can find out more about the Select 50, including how our experts select funds for the list, on our Select 50 page.
Speaking to our customers since the launch of the Select 50, it has become clear to us that we can go even further to help investors achieve better financial outcomes.
For some investors, the challenge of putting together a portfolio of funds that work well together is too difficult or too time-consuming. For others, the choice of funds on the Select 50 is still too wide.
For investors like this, who buy into the idea of the Select 50 but want a bit more help, we’ve developed a new one-stop fund.
We’re proud to present the Fidelity Select 50 Balanced Fund.
So what is the Select 50 Balanced Fund?
The Select 50 Balanced Fund is a quick and easy way to access the investment expertise that underpins Fidelity’s popular Select 50 list of preferred funds.
The fund is a portfolio of other funds (a ‘fund of funds’) that will invest predominantly in Select 50 funds. It aims to produce long-term capital growth from a globally-diversified range of assets.
The fund will be balanced between assets with varying degrees or growth potential and risk. These might include shares, commodities, property, bonds and cash.
The fund will operate within some fixed limits. Equities (shares) will account for 30-70% of the fund’s assets; debt instruments (bonds, including high yield and emerging market bonds) will represent 20-60% of the fund; cash will be the remaining 0-20% of the fund.
Why did we decide to launch the Select 50 Balanced Fund?
We conducted some extensive customer research before deciding to launch the Select 50 Balanced Fund. The research confirmed our view that there is considerable demand for a single investment fund built from a shortlist of ‘best buy’ funds.
Among the investors we questioned, we found:
- More than two thirds described themselves as having a medium risk appetite - the balanced nature of the fund is aimed at this moderately cautious target market
- More than half expressed a preference for actively-managed rather than passive funds
- More than two thirds said they ‘enjoy looking after my investments and spend time ensuring I get it right’ - the fund is aimed at this more engaged investor who nevertheless wants some extra help
Who might be interested in the Select 50 Balanced Fund?
We serve different broad categories of self-directed investor. Our research shows there are three main groups:
- The first, most engaged group, likes to ‘do it myself’. This set of investors enjoys searching through the nearly 3,000 funds on our platform, using the Investment Finder tool to find the most interesting investment opportunities. Investing is a hobby for this group.
- At the other end of the spectrum is a group of less-engaged investors who understand the need to make financial provision for themselves and their families. But they are busy or just not that interested. Their mantra is ‘do it for me’. For this type of investor, we have a great solution - our Pathfinder tool helps them choose a well-diversified multi-asset fund that suits their personal risk appetite.
- In between these two extremes is a large set of investors who are interested in investment and want to be involved in the choice of the right funds for their portfolio. But they don’t want to be left on their own. They want Fidelity to ‘do it with me’.
This middle group is already well-served by our Select 50 preferred fund list, a focused list of funds in which our investment experts have a high degree of conviction.
But we'd like to do more for this group. The launch of the Select 50 Balanced Fund is designed to make life even easier for this middle set of investors. The same investment expertise, attention to detail and due diligence that underpins the Select 50. And all in one easy-to-access fund.