Boost Retirement Income: Two Low-Cost Fidelity Funds to Own

"However, it takes time and a certain degree of acumen to pick stocks that create a winning portfolio. But you can take out the guess work by investing in index funds. These are professionally managed funds that aim to mimic the performance of market indexes that contain hundreds of leading stocks. This offers instant diversification, without the need for stock picking."

"The Fidelity ZERO Total Market Index Fund (FZROX) is part of Fidelity's lineup of zero expense ratio mutual funds. Expense ratios are annual management fees that are automatically deducted from the share price. But a 0% expense ratio means that management fees won't eat into this fund's returns - a rarity for total stock market index funds."

"So with FZROX, you can benefit from compound interest with no annual management fees taken out of your returns. FZROX invests at least 80% of its assets in common stocks included within the Fidelity U.S. Total Investable Market Index. This gives you exposure to small-, mid- and large-cap companies across various sectors."

Index funds provide instant diversification by tracking broad market indexes that include hundreds of leading stocks, removing the need for active stock picking. Some index funds pay dividends that supplement total returns. Combining a total stock market fund with a total bond market fund creates a diversified retirement portfolio that can preserve earnings while capturing market upsides. Fidelity's ZERO Total Market Index Fund (FZROX) carries a 0% expense ratio, eliminating annual management fees and enhancing compound returns. FZROX invests at least 80% of assets in the Fidelity U.S. Total Investable Market Index, covering small-, mid- and large-cap companies across sectors.

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