Fidelity Index Funds For Beginners | The Ultimate Guide
Danny Sully Danny Sully
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 Published On Jan 4, 2023

Fidelity Index Funds For Beginners: Index Funds are one of the best investments of all time and here is a complete step by step tutorial to Fidelity Index Funds for beginners. After watching this video you will have the knowledge to outperform many of the professionals to start building wealth.

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⏰ Timestamps ⏰
00:32 What is an Index Fund?
04:50 Advantages of Index Funds
07:40 Fidelity Index Funds vs Competitors
08:37 Best Fidelity Index Funds
11:50 How To Buy Fidelity Index Funds
15:05 How Much To Invest

📝 What is an Index Fund?
An index fund is a collection of different companies on a list you can put your money into that allows you to own portions to each of those companies within one purchase. An index fund is a type of mutual fund or exchange traded fund (ETF) that tracks the returns of a particular market index. A market index is a collection of securities (such as stocks or bonds) that represent a specific sector of a market or economy.

A popular index fund is the S&P 500 that is the top 500 publicly traded companies in the U.S. and is a broad scope of the U.S. economy. On Fidelity, the S&P 500 Index is listed under the "Fidelity 500 Index Fund (FXAIX)".

If you want a deeper scope, you can invest into the Total Market Index Fund that contains many different small, mid, and large sized companies. This is listed on Fidelity as the "Fidelity Total Market Index Fund (FSKAX)".

Why Invest in Index Funds? (ADVANTAGES)
1. Passively Managed:
The S&P Dow Jones Indices research study states that 10.62% of actively managed funds (controlled by professionals) outperformed passively managed (not controlled by professionals). That means roughly 90% of portfolio managers could not outperform passively managed funds. Always looking for the best Return On Investment (ROI).

2. Diversification
If you only own singular stocks and one was to go bankrupt or collapse in share price, you could lose a significant amount. In comparison, if you owned the S&P 500 with 500 companies, you would have much less risk to losing since 1 company out of 500 is a small percentage to the overall investment.

3. Expense Ratio
The cost to owning index fund based mutual funds or ETFs is much cheaper than purchasing actively managed mutual funds since they charge much higher expense ratios and hidden management fees that over the years will significantly impact your results.

Best Fidelity Index Funds:
- DOMESTIC -
1. Fidelity 500 (FXAIX)
2. Fidelity Large Cap Growth Index Fund (FSPGX)
3. Fidelity Total Market Index Fund (FSKAX)
- FOREIGN -
4. Fidelity International Market Index Fund (FSPSX)
5. Fidelity Emerging Markets Index Fund (FPADX)
- BOND -
6. Fidelity Total Bond Index Fund (FTBFX)

How Much To Invest (Moderately Aggressive Growth) not a financial advisor, just a general guide:
- DOMESTIC -
1. FXAIX: 40%
2. FSPGX: 20%
3. FSKAX: 10%
- FOREIGN -
4. FSPSX: 10%
5. FPADX: 10%
- BOND -
6. FTBFX: 10%

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Sources:
- Warren Buffett won $2.2m bet: https://www.cnbc.com/2018/02/16/warre...
- S&P Dow Jones Indices Research: https://www.spglobal.com/spdji/en/res...
- Index Fund overview from SEC: https://bit.ly/3EwCuWb

Disclaimer: This video is for entertainment purposes only. The information provided in this video does not, and is not intended to, constitute legal, tax or financial advice; instead, all information, content, and materials available on this video and on this channel are for general informational purposes only. The presenter is not an attorney, accountant or financial advisor. Viewers of this video should contact their attorney, accountant or financial advisor to obtain advice with respect to any particular legal, tax or financial matter.

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