Large cap US growth tilted portfolio with target date and international satellite exposure

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor seeking long‑term capital growth with a moderately aggressive risk tolerance who accepts sizeable drawdowns in pursuit of higher returns. The investor likely has a multi‑decade horizon is comfortable with intense market volatility and prioritizes wealth accumulation over near‑term income. They value low costs and passive indexing but should be willing to monitor geographic and sector concentration. Periodic rebalancing and a clear plan for handling market declines are important to maintain discipline and capture the intended long‑term growth outcome.

Positions

  • Fidelity 500 Index Fund
    FXAIX - US3159117502
    60.00%
  • FIDELITY FREEDOM INDEX 2055 FUND INVESTOR CLASS
    FDEWX - US3157938289
    30.00%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND
    FZILX - US31635T6091
    10.00%

The portfolio is concentrated in three funds with 60% in a large‑cap US index 30% in a target‑date 2055 fund and 10% in an international index fund creating a 97% equity heavier mix than many multi‑asset benchmarks. This matters because high equity share amplifies both upside and downside relative to balanced portfolios; equities drive long‑term growth but also increase short‑term volatility. Recommendation: clarify the goal—pure growth or glidepath exposure—and reduce overlap between funds so each holding adds distinct diversification value rather than duplicating US large‑cap exposure.

Growth Info

Using a hypothetical $10,000 invested historically the reported 14.27% CAGR would grow that sum substantially over a multi‑year horizon illustrating strong past returns while showing vulnerability during stress with a max drawdown of –32.71%. CAGR, or Compound Annual Growth Rate, measures average annual growth like a car’s steady speed over a long trip. The top 22 days made 90% of returns which highlights return concentration. Recommendation: prepare for large corrections with explicit drawdown tolerance and a rebalancing or cash plan rather than relying solely on past outperformance.

Projection Info

Monte Carlo simulations model many possible future paths by randomly sampling returns and volatility based on historical behavior to estimate outcome ranges. In this case 1,000 simulations produced a median end value near historical growth and only 10 simulations with negative returns, suggesting skewed favorable outcomes but not certainty. Monte Carlo is a scenario tool not a prediction; it assumes past relationships persist which may not hold. Recommendation: use these results as scenario planning—test different bond weights and international tilts to see how downside percentiles improve before committing to a single plan.

Asset classes Info

  • Stocks
    97%
  • Bonds
    3%
  • Cash
    0%
  • Other
    0%
  • Not Classified
    0%

The allocation is 97% stocks and 3% bonds making it extremely equity‑heavy compared with many growth benchmarks that still carry meaningful fixed income exposure for volatility dampening. Asset class balance matters because bonds typically reduce sequence‑of‑returns risk and smooth portfolio swings. Recommendation: consider a modest increase in fixed income or diversifying non‑correlated assets to better match the stated growth risk profile while providing a buffer for drawdowns and rebalancing opportunities.

Sectors Info

  • Technology
    28%
  • Financials
    16%
  • Consumer Discretionary
    11%
  • Industrials
    10%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    3%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

Sector weights show a tech tilt around 28% with strong positions in financials consumer cyclical and industrials and smaller exposures to energy materials utilities and real estate. Sector concentration can drive half your performance in any year and tech heavy portfolios often face greater sensitivity to interest rate moves and sentiment shifts. Recommendation: decide if the sector tilt is intentional for growth; if not, trim concentrated sectors or add defensive or non‑correlated exposures to reduce single‑sector risk while keeping the growth orientation intact.

Regions Info

  • North America
    80%
  • Europe Developed
    9%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    0%
  • Europe Emerging
    0%

Geographic exposure is heavily tilted to North America at about 80% with modest developed Europe and minimal emerging market weights. Home bias can be beneficial if domestic markets outperform but it reduces diversification across different economic cycles and currency regimes. Recommendation: increase developed ex‑US and emerging market exposure gradually—using the international fund or a dedicated emerging market sleeve—to capture broader growth drivers and reduce dependency on one economic region.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    33%
  • Mid-cap
    16%
  • Small-cap
    2%
  • Micro-cap
    0%

Market cap exposure is dominated by mega and big caps (45% and 33%) with moderate mid cap and minimal small cap exposure. Large caps offer stability liquidity and lower volatility but smaller caps can add diversification and higher long‑term return potential. Recommendation: if comfortable with higher volatility and seeking long‑term excess return consider a measured small‑mid cap allocation to broaden the opportunity set and improve diversification across company sizes.

Redundant positions Info

  • FIDELITY FREEDOM INDEX 2055 FUND INVESTOR CLASS
    Fidelity 500 Index Fund
    High correlation

The two largest holdings were flagged as highly correlated which is expected because the target‑date fund contains a large US equity sleeve overlapping the S&P 500 index fund. Correlation measures how assets move together; high correlation reduces the diversification benefit during market stress. Recommendation: remove or reduce duplicate equity exposure by replacing overlapping components with distinct asset classes or increasing non‑US and fixed income allocations to achieve real diversification rather than mirror holdings.

Dividends Info

  • FIDELITY FREEDOM INDEX 2055 FUND INVESTOR CLASS 1.70%
  • Fidelity 500 Index Fund 1.10%
  • FIDELITY ZERO INTERNATIONAL INDEX FUND 2.30%
  • Weighted yield (per year) 1.40%

Dividend yield across the holdings averages about 1.4% with individual fund yields ranging from roughly 1.1% to 2.3%. Dividends provide steady cash flow and can compound when reinvested but here they are a small portion of total return given the growth orientation. Recommendation: if income is a secondary goal consider shifting a portion to higher‑yielding assets or bond income; if growth is primary continue reinvesting dividends to benefit from compounding while monitoring tax impact in taxable accounts.

Ongoing product costs Info

  • FIDELITY FREEDOM INDEX 2055 FUND INVESTOR CLASS 0.12%
  • Fidelity 500 Index Fund 0.02%
  • Weighted costs total (per year) 0.05%

Fund costs are low overall with the large‑cap index at about 0.02% and the target‑date at 0.12% resulting in an aggregate portfolio TER near 0.05%. TER, or Total Expense Ratio, is like the annual maintenance fee on an investment; lower fees compound into materially better net returns over decades. This cost structure is a clear strength and aligns with best practices. Recommendation: maintain low‑cost vehicles where possible and periodically verify that expense ratios remain competitive especially for the target‑date fund as fees can change.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Optimization via the Efficient Frontier identifies the best risk‑return mix from the current asset set assuming only allocation changes among those holdings. The Efficient Frontier concept shows portfolios that maximize expected return for a given level of risk like choosing the quickest route for a given fuel budget. Before running optimization remove overlapping assets since duplicated exposures artificially inflate correlation and reduce the meaningful frontier. Recommendation: run constrained optimizations after removing redundancy to find true efficient mixes at several risk levels and evaluate downside scenarios.

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