Investing Principles

Help your clients achieve their long-term goals.

Leverage Fidelity insights to create an investment plan

  1. Market Volatility

    Focus on Long-Term Goals during Periods of Volatility

    Equity markets rise, decline, and trade sideways. They rarely go straight up. While declines can be difficult, they are a normal part of equity markets, and staying the course may prove to be beneficial.

    MISSING OUT ON JUST FIVE GOOD DAYS IN THE MARKET CAN COST YOU

    Hypothetical growth of $10,000 in the S&P 500: 1/1/80 to 1/1/19

    Missing 50best daysMissing 30best daysMissing 10best daysMissing 5best daysAll days$57,382$125,080$318,036$426,993$659,515-35%-91%

    Clients shouldn't bail out at the first sign of a declining market.

    Learn more

    Past performance is not a guarantee of future results. The hypothetical example assumes an investment that tracks the returns of the S&P 500 index and includes dividend reinvestment but does not reflect the impact of taxes, which would lower these figures. There is volatility in the market and a sale at any point in time could result in a gain or loss. Your own investment experience will differ, including the possibility of losing money. You cannot invest directly in an index. Source: FMR Co., Fidelity AART, as of 1/1/19.

  2. BUILDING PORTFOLIOS

    Avoid Making Common Mistakes When Building Portfolios

    After conducting thousands of portfolio reviews for advisors, Fidelity uncovered seven common myths to avoid to help you build better portfolios. No longer are the days of searching solely for optimal risk and return when building portfolios for your clients.

    AVERAGE SOURCE OF RETURNS FOR U.S. STOCKS 1990–2020

    7%68%25%CompanySectorSize/Style93%of performance is drivenbysectorandcompanyfactors

    Source: FactSet, Fidelity Investments, as of 3/31/20. Based on a stepwise regression analysis of 52-week returns (annualized). Sector returns are a cap-weighted average returns of all GICS sectors. Results based on the average of all stocks in the Russell 3000 Index. Past performance is no guarantee of future results. It is not possible to invest directly in an index. All market indices are unmanaged. Index performance is not meant to represent that of any Fidelity mutual fund.

    Explore Fidelity's seven common myths.

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  3. Tax-efficient investing

    Utilize Tax-Efficient Investment Strategies

    Tax laws have resulted in higher taxes for many and may significantly impact an individual's overall investment performance. Consider tax-efficient investment vehicles when assessing client needs.1

    The Power of Tax Deferral

    Tax deferral may help clients' portfolios grow faster. Tax deferred Taxable $82,931 $73,004

    Past performance is not a guarantee of future results.

    Hypothetical example assumes an annual contribution of $1,000, a tax rate of 25%, and an annual return of 7%. State and local taxes and account fees and expenses are not taken into account. This example also does not take into account capital loss carryforwards or other tax strategies used to reduce taxes that could be incurred in a taxable account. This example is not guaranteed, and you may have a gain or loss when you sell.

    Help clients develop a tax-efficient investment strategy.

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Investing Insights

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  • 1. Investing in a variable annuity involves risk of loss. Investment returns and contract value are not guaranteed and will fluctuate.
 
 

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