Fidelity Small Cap Index's Process Pillar rating is Average, but a strong management team still helps this strategy retain its Morningstar Medalist Rating of Bronze.
Small-cap mutual funds are extremely risky investments. This means that investing in them could result in short-term losses. Small-cap funds should be avoided if you cannot tolerate seeing negative returns on your investments at times. It is best for new investors to begin investing in other category mutual funds.
Fees are Low compared to funds in the same category. Fidelity® Small Cap Index Fund has an expense ratio of 0.02 percent.
Overall Rating. Morningstar has awarded this fund 5 stars based on its risk-adjusted performance compared to the 1280 funds within its Morningstar Category.
Warren Buffett believes an S&P 500 index fund is the best way for most people to get stock market exposure. That's because buying individual stocks requires a level of commitment that exceeds what most investors are willing to undertake.
Small-cap mutual funds are very risky. This means that in the short term, investing in them could lead to short-term losses. If you cannot tolerate seeing negative returns on your investments at specific periods, you should stay away from small-cap funds.
Fidelity has average trading and low non-trading fees, including commission-free US stock trading. On the negative side, margin rates and fees for some mutual funds can be high.
Overall Rating
Morningstar has awarded this fund 3 stars based on its risk-adjusted performance compared to the 596 funds within its Morningstar Category.
The main disadvantage of a small-cap fund is its higher risk profile, making it susceptible to market volatility and economic downturns.
Invesco India Smallcap Fund Direct Growth
Fund Performance: The Invesco India Smallcap Fund has given 21.89% annualized returns in the past three years and 30.36% in the last 5 years. The Invesco India Smallcap Fund comes under the Equity category of Invesco Mutual Funds.
Market experts recommend that investors hold small caps for at least 10 years to benefit and allocate 8% of the portfolio to small caps. But this is entirely subject to the risk appetite and investment goals of the investor.
The Securities Investor Protection Corporation (SIPC) is a nonprofit organization that protects stocks, bonds, and other securities in case a brokerage firm goes bankrupt and assets are missing. The SIPC will cover up to $500,000 in securities, including a $250,000 limit for cash held in a brokerage account.
The SIPC will cover up to $500,000 in securities, including a $250,0002 limit for cash held in a brokerage account. All Fidelity brokerage accounts are covered by SIPC. This includes money market funds held in a brokerage account since they are considered securities.
Fidelity's Managed Retirement Funds can provide you with a single investment asset allocation strategy that aligns with your age. These funds make it easier to manage your money while generating income through the use of Fidelity's automatic withdrawal services.
Outlook for mid and small caps remains positive for FY25. Small cap mutual funds received an inflow of Rs 34,223 crore in the calendar year 2024 against an inflow of Rs 41,035 crore in the calendar year 2023. The category contributed 9% to the total inflows in equity mutual funds of Rs 3.94 lakh crore in CY24.
Relative to large-cap indices, small-cap P/E multiples look relatively low; they are currently 11% below average (see Exhibit 2). We expect earnings to drive the next leg higher for small-cap share prices. Analysts are looking for robust earnings growth: 15% this year, and by over 30% in 2025 and 2026.
Based on 506 Wall Street analysts offering 12 month price targets to Fidelity 500 Index Fund holdings in the last 3 months. The average price target is $236.53 with a high forecast of $276.59 and a low forecast of $193.16. The average price target represents a 15.10% change from the last price of $205.51.
Fund Performance
The fund has returned 13.94 percent over the past year, 8.20 percent over the past three years, 12.09 percent over the past five years, and 11.29 percent over the past decade.
In terms of the exposure an investor is getting to the market, there really are not any big differences between these two funds. Trading flexibility and tax implications are the two deferring factors that stand out. VOO trades throughout the trading day on stock exchanges, just like individual stocks.