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Investing Principles
Staying committed to the fundamental principles of investing can help you and your clients achieve long-term goals.
Strategic building blocks to help you help your clients
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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 CAN IN THE MARKET COST YOU
Hypothetical growth of $10,000 in the S&P 500: 1/1/80 to 1/1/19
Clients shouldn't bail out at the first sign of a declining market.
Learn morePast 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.
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BUILDING PORTFOLIOS
Avoid Making Common Mistakes When Building Portfolios
After conducting thousands of portfolio reviews for advisors, Fidelity uncovered seven common myths that may help you build better portfolios for today. 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
Source: FactSet, Fidelity Investments, as of 3/31/2020. 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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Tax-efficient investing
Utilize Tax-Efficient Investment Strategies
Tax laws have resulted in higher taxes for many and may significantly impact an individuals overall investment performance. Consider tax efficient investment vehicles when assessing client needs.
The Power of Tax Deferral
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
- 1. Investing in a variable annuity involves risk of loss. Investment returns and contract value are not guaranteed and will fluctuate.