Fidelity Freedom Index 2020 Fund (FATYX)

Overview

The fund described invests in a diversified portfolio that spans across multiple asset classes, including U.S. equity funds, international equity funds, bond funds, and short-term funds, specifically comprising underlying Fidelity® funds. Excluding any potential investments in money market funds, each component of the fund aims to align its investment results with the total return of a designated index. This approach leverages the diverse expertise and strategies of Fidelity®'s suite of funds to target comprehensive market exposure and index-matched returns, catering to investors looking for a mix of growth, income, and stability in their investments.

Products and Services

• U.S. Equity Funds

Fidelity® U.S. equity funds focus on investing in a wide range of American companies, varying in size from small to large-cap stocks. These funds aim to capture the growth potential of the U.S. market, targeting sectors and industries with the expectation of high returns. The investment strategy typically follows the performance of a specific U.S. equity index, seeking to offer investors exposure to the domestic stock market.

• International Equity Funds

International equity funds by Fidelity® are designed to invest in non-U.S. companies, providing exposure to global markets. These funds may target specific regions, countries, or sectors outside the United States, aiming to benefit from the growth potential in international markets. By matching the performance of an international equity index, these products offer a diversified investment option beyond U.S. borders.

• Bond Funds

The fund includes investments in Fidelity® bond funds, which focus on fixed-income securities. These can range from government securities, corporate bonds, to high-yield and municipal bonds, across various maturities. The objective is to provide stable income and mitigate risk, with each bond fund aiming to reflect the total return of its respective bond index.

• Short-Term Funds

Short-term funds within the fund's portfolio are designed for investors seeking to reduce volatility and enhance liquidity. Investing primarily in short-duration bonds and other high-quality, short-term investments, these funds serve as a conservative investment vehicle aimed at protecting capital while offering a modest yield. The focus is on maintaining easy access to funds with minimal exposure to market fluctuations.