Fidelity investments is one of the most popular asset management companies today. With its vast client assets, low-cost index funds, and comprehensive financial services, it has attracted clients from all walks of life. This article will analyze the key facts about fidelity investments in 2020 and compare it with other top investment companies. We’ll look at total client assets, number of funds offered, index fund performance, financial planning services, and more to understand why fidelity investments is so popular among retail and institutional investors.
Fidelity investments manages over $11 trillion in total client assets
As of 2020, fidelity investments had over $11 trillion in total client assets under management or administration. This makes it one of the largest asset managers globally. With such a huge client base, fidelity investments clients cover over 50% of the total US stock market capitalization. This gives it enormous economies of scale that allows Fidelity to keep costs low on its funds and services.
Fidelity investments offers investors over 500 mutual funds and index funds
Fidelity investments offers retail and institutional investors access to over 500 mutual funds across a diverse range of categories like large-cap, mid-cap, small-cap, international, bonds, etc. With so many options, investors can easily construct a low-cost, diversified portfolio. Fidelity is especially known for its indexed mutual funds and ETFs that track market indexes at rock-bottom expense ratios. For example, Fidelity’s Total Stock Market Index Fund has an expense ratio of just 0.015%.
Fidelity investments index funds outperform competitors
While keeping costs low, Fidelity index funds like the Total Stock Market Index Fund and Total Bond Market Index Fund have outperformed comparable offerings from Vanguard and Schwab. Fidelity’s proprietary asset management capabilities give its index funds an edge. The Fidelity Zero Total Market Index Fund is also extremely popular since it has zero expenses.
Fidelity investments offers investors robust research and financial planning
Unlike discount brokers, Fidelity investments has hundreds of in-house analysts and strategists that produce actionable investment research and market insights for clients. It also has a nationwide network of financial advisors who provide investors comprehensive financial planning including retirement planning, tax planning, estate planning, college planning, and more.
Fidelity investments offers banking, credit cards, and other financial services
Besides investment accounts, Fidelity investments also offers retail investors checking accounts, savings accounts, credit cards, mortgages, and more. By consolidating their finances with Fidelity, investors can efficiently manage their overall financial life. The Fidelity Rewards Visa Signature credit card is very popular among investors.
In summary, with over $11 trillion in client assets, low-cost index funds, award-winning research, and comprehensive financial services, it’s clear why fidelity investments is one of the top investment firms today. For retail and institutional investors alike, Fidelity investments should be a top choice.