Fidelity Fund Portfolios (2024)

FAQs

Is the 3 fund portfolio good enough? ›

While the three-fund portfolio is great because it's simple to learn and easy to manage, it isn't without its disadvantages, as we discuss on our personal finance primer.

Analyze, compare, and optimize your investment strategy in minutes with our free portfolio analysis tool. New to PQC? Sign up and give it a try in just a few simple steps.

A three-fund portfolio isn't complex. It just means choosing one representative fund to include in your portfolio from the domestic stock, international stock and bond categories. These funds can all belong to the same family or come from different mutual fund companies.

So, what's the ideal number of funds? Well, there is no right or wrong answer. It can depend on a number of factors including the number of funds you're comfortable monitoring in your portfolio, your investment objectives and risk appetite.

Three-fund lazy portfolios

These usually consist of three equal parts of bonds (total bond market or TIPS), total US market and total international market.

Building a Solid Foundation: The Boring Money Account

The core of Bogles recommended portfolio is having a boring money account invested primarily in index funds. Bogle suggested putting at least 95% of investable assets into low-cost, diversified index funds.

Investors can rebalance their portfolios whenever they want, depending on personal preferences. However, some investors rebalance their portfolios at set time points, whether monthly, quarterly, or annually.

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income. Target allocations can vary +/-5%.

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification. But the number of ETFs is not what you should be looking at.

The decision to invest in one fund or multiple funds depends on your investment goals, risk tolerance, and diversification strategy. Investing in one fund can be simpler and more straightforward, while multiple funds can offer broader diversification across different assets and sectors.

Which funds will perform best in 2024? ›

How many funds are enough? One thing you should always remember is that a lot of funds in your portfolio doesn't mean you have a diversified portfolio. A portfolio with 15 funds that have overlapping is not diversified. You should have no more than 4 funds in your portfolio.

As of May 17, 2024, the Bogleheads Three-fund Portfolio returned 7.40% Year-To-Date and 8.21% of annualized return in the last 10 years.

General ROI: A positive ROI is generally considered good, with a normal ROI of 5-7% often seen as a reasonable expectation. However, a strong general ROI is something greater than 10%. Return on Stocks: On average, a ROI of 7% after inflation is often considered good, based on the historical returns of the market.