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FRUAX

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Analysis and statistics

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About

FRUAX is the ticker symbol for the Fidelity Freedom® Income Fund. This fund is a target date fund designed for investors planning to retire around the year 2030 (although it is also used by those already in retirement). The fund primarily invests in a diversified portfolio of other Fidelity mutual funds, allocating its assets among stocks, bonds, and short-term investments. As the target date approaches and passes, the fund becomes more conservatively allocated, shifting from a higher allocation towards equities in its early stages to a greater allocation in fixed-income investments over time, which aims to provide income and preserve capital for retirees. Investors should consider their own risk tolerance and time horizon before investing in target date funds.
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Factors

Interest Rates: Rising rates typically decrease bond values, lowering FRUAX's price. Conversely, falling rates can increase bond values and the fund's price. Credit Risk: Downgrades or defaults of bonds held in FRUAX lower the fund's value. High-quality bonds mitigate this. Inflation: Unexpected inflation erodes bond values, decreasing FRUAX's price. Inflation-protected bonds are less affected. Market Sentiment: General optimism or pessimism toward bonds impacts demand, affecting FRUAX's price. Fund Management: The manager's skill in selecting and trading bonds influences performance and price.

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