Fidelity Freedom Index 2025 Fund - Premium Class (FATZX)

Overview

This fund represents a comprehensive investment vehicle designed to cater to various investor needs for diversity and risk management. It acts as an aggregator of multiple types of investment assets, combining Fidelity® U.S. equity funds, international equity funds, bond funds, and short-term funds into a single portfolio. Each component fund, with the exception of any money market fund included, aims to mirror the total return of its respective index. This approach allows investors to access a broad spectrum of asset categories and geographic markets through a single investment, simplifying the process of diversifying their portfolio while aiming to achieve balanced and potentially less volatile investment returns.

Products and Services

• Fidelity® U.S. Equity Funds

  These funds focus on investing in a wide range of U.S.-based companies, aiming to replicate the performance of various U.S. equity indices. Through these funds, investors can gain exposure to American corporations across different sectors and market capitalizations, from large, well-established companies to smaller, growth-oriented firms. The objective is to capitalize on the growth potential of the U.S. market.

• International Equity Funds

  Fidelity® offers international equity funds that provide investors with exposure to non-U.S. markets. These funds invest in companies located outside of the United States, including emerging and developed markets. By including international equity funds, the portfolio allows investors to diversify further and take advantage of growth opportunities in global markets, thus potentially reducing country-specific risk and enhancing returns.

• Bond Funds

  The bond funds within this portfolio focus on investments in various debt securities. These might include government, municipal, and corporate bonds. Bond funds aim to offer a steady income stream while seeking to protect the invested capital. They are generally considered less volatile than equity funds, providing a balancing effect to the equity components of the portfolio. This diversification into debt securities serves as a risk management tool, aiming to mitigate overall portfolio volatility.

• Short-Term Funds

  Short-term funds primarily invest in securities with shorter maturity periods. This category includes but is not limited to money market funds, short-duration bond funds, and other similar instruments. The goal of including short-term funds in the portfolio is to enhance liquidity and provide stability. These funds can help manage the portfolio's cash flow, allowing for quick reallocation of assets when needed and offering a buffer during market downturns.