Hi, I am investing in target funds but have very low rate of return. Current YTD Rate of Return - +8.04% Company - Amazon Platform - Fidelity What % blend do you guys invest in? #personalfinance #investments
What does the return %age look like?
I recommend funds like ETHE and GBTC boomer target funds are a waste of opportunity in today's climate, especially if you are young
I had fidelity commingled pool since 2014 (large cap growth mostly) and it has given me 22% yoY growth. Of course I am sure the pandemic growth surge and the bull market has helped, but I am sure there are others which can get you about 10% YoY with lesser risk than mine. Other one would be artisan midcap. I do a 70-30 with 30 in midcap. Of course I am mostly in higher risk than avg bracket, but I think higher risk over 20+ yrs would eventually pan out :) Lower the risk, lower the gains. Don’t expect to get high rewards if you want x funds in y year (target funds).
Artisan mid-cap has a high expense ratio + is very growth-oriented, which is why it's been getting crushed lately. I've been investing in FSMDX via BrokerageLink instead
Take S&P 500. It’s an option on Fidelity for Amazon.
8% return in 4 months is not that low. People are spoiled these days by the bull run of the market.
8% YTD is a really good return already. You could look to diversify in international markets as well as midcap
Target funds are the worst. With high fees, they have the worst performance. Based on options in your company, look into large cap growth/blend or midcap growth or blend funds. Those should give you the best returns with relatively lower fees.
Else, roll it over to Vanguard or other 401K and then invest based on what you see fit