You could lose money by investing in a money market fund. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Before investing, always read a money market fund’s prospectus for policies specific to that fund.
Past performance is no guarantee of future results.
Diversification and asset allocation do not ensure a profit or guarantee against loss.
As with all your investments through Fidelity, you must make your own determination whether an investment in any particular security or securities is consistent with your investment objectives, risk tolerance, financial situation, and evaluation of the security. Fidelity is not recommending or endorsing this investment by makingit available to its customers.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Please note: When comparing funds, please consider all important factors, including information pertaining to fund fees, fund features, and fund objectives. While funds may track an index, the indices and strategies employed in seeking to achieve an investment goal may be different. Each fund’s investment object and strategy and index tracked to achieve investment goals may differ. For new investors, funding investment minimums may be different.
ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses.
An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. Interest rate increases can cause the price of money market securities to decrease.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
1022577.2.1
As an experienced financial analyst with a deep understanding of investment strategies and market dynamics, I want to shed light on the complexities mentioned in the provided investment disclaimer. My expertise in the field is not just theoretical; I've navigated through diverse market conditions and possess an in-depth knowledge of the intricacies associated with various financial instruments.
The disclaimer rightly emphasizes the risks associated with investing, providing a comprehensive overview that aligns with my own professional experiences. Let's break down the key concepts highlighted in the article:
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Money Market Funds:
- Money market funds are mentioned as an investment option that is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.
- Investors are urged to read the prospectus of a money market fund before investing, emphasizing the importance of understanding specific fund policies.
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Past Performance and Future Results:
- The disclaimer wisely cautions that past performance is not a guarantee of future results, emphasizing the unpredictable nature of financial markets.
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Diversification and Asset Allocation:
- Diversification and asset allocation are acknowledged as risk management strategies, but the disclaimer rightly states that they do not ensure a profit or guarantee against loss.
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Individual Determination of Investment Suitability:
- Investors are reminded that they must assess whether an investment aligns with their objectives, risk tolerance, financial situation, and evaluation of the security. This underlines the importance of personalized decision-making in investments.
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Fidelity's Neutral Stance:
- Fidelity makes it clear that it is not recommending or endorsing the mentioned investment. This neutrality is crucial for investors to make independent decisions based on their own analysis.
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Market Volatility and Stock Investments:
- The warning about stock market volatility and its sensitivity to various factors such as company, industry, political, regulatory, market, or economic developments highlights the inherent risks in equity investments.
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Bond Market Risks:
- Bond market volatility is acknowledged, with specific risks mentioned, including interest rate risk, inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties.
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ETFs and Market Fluctuations:
- Exchange-Traded Funds (ETFs) are introduced with an emphasis on their susceptibility to market fluctuations and risks associated with underlying investments. Management fees and other expenses are also highlighted.
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Interest Rate Sensitivity:
- The article underscores the impact of interest rate increases on money market securities, potentially causing a decrease in their prices.
In conclusion, the comprehensive nature of this disclaimer is crucial for investors to make informed decisions, underscoring the significance of due diligence, risk awareness, and personalized evaluation in the complex landscape of financial investments. This level of detail is essential for anyone considering or currently engaged in investment activities.
