The Tool Desk
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How to choose a Fidelity mutual fund
Start with the job you want the fund to do: for example, provide exposure to a particular part of the market or form one component of a broader portfolio. Then compare candidates that pursue similar objectives. Fidelity’s fund screener offers filters and comparison data for management approach, net expense ratio, manager tenure, fund assets, turnover, minimum investment, volatility measures, and income characteristics. Check each data point’s as-of date.
- Define the objective and exposure. Identify the market exposure you want and consider whether the fund is diversified enough for its intended role.
- Choose a comparison group. Compare index funds with similar index funds, or active funds with similar objectives. The available evidence does not establish that either management style always performs better.
- Review costs and access. Check the current net expense ratio, any other applicable costs, minimum investment, and whether the fund is eligible for your account.
- Assess risk and income. Compare volatility measures and income characteristics against your needs and ability to tolerate fluctuations.
- Evaluate returns on matching terms. Use the same performance periods and data-as-of date for each candidate. Historical performance does not guarantee future results and cannot establish suitability on its own.
- Read the current fund materials. Confirm the objective, risks, costs, and account-specific terms in the latest fund page and prospectus before investing.
Examples to put in context
Fidelity 500 Index Fund (FXAIX)
Fidelity’s screener listed FXAIX with a 0.015% net expense ratio and a $0 minimum investment as of 2026-08-31. These are dated listing details, not a guarantee of current terms or a recommendation for every investor. Check the current fund information and account eligibility before acting.
Fidelity ZERO index funds
Fidelity describes four ZERO expense ratio index mutual funds that track Fidelity-branded indexes. A zero stated fund expense ratio is only one comparison point. Examine the tracked index, investment objective, diversification, risks, and account terms as well.
#1 Best Overall
Active and index funds
Fidelity offers both active and index choices in its screener. Compare candidates by objective, market exposure, diversification, cost, risk, and intended use; the management label alone does not identify a best fund.
What to compare before investing
| Factor | What to check |
|---|---|
| Objective and exposure | What the fund invests in and whether that exposure fits the role you need it to fill. |
| Management approach | Whether it is active or index-based, compared with funds serving a similar purpose. |
| Diversification | The breadth of holdings or, for an index fund, the index it tracks. |
| Costs | Current net expense ratio and any other applicable costs. |
| Minimum and eligibility | Current investment minimum and whether the fund is available in your specific account. |
| Risk and income | Volatility measures and income characteristics in relation to your circumstances. |
| Performance | Returns over matching periods, with the same data-as-of date; do not treat past returns as a forecast. |
Why a return ranking can mislead
Funds with different objectives or exposures are not interchangeable, so ranking them by a single return number can obscure what risks they took and what role they serve. Performance also depends on the period selected and the date of the data. Use returns as one part of a like-for-like comparison, not as a substitute for reviewing the fund’s objective, costs, risks, and fit.
Rank #2
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Match the choice to your circumstances
The best candidate depends on information the fund name alone cannot provide: your account type, time horizon, risk tolerance, tax situation, portfolio allocation, and need for income. Without those details, a personalized ranking would be misleading. Use the comparison process to narrow candidates, then verify current terms and eligibility in Fidelity’s latest materials.
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Rank #4
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