We'd like to introduce you to Fidelity Income Fund, one of the diverse investment methods available to you. If you are interested in investing, you may have heard of this fund, but let's take a look at what its characteristics are and why you should be interested.

What is Fidelity Income Fund?

Fidelity Income Fund is one of the leading dividend funds managed by Fidelity, a large US asset management firm. This fund targets investors seeking stable returns and primarily invests in high-yielding stocks listed on the US stock market.

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Fund Investment Strategy

• Focus on investing in stocks with high dividend yields.The fund carefully selects investment targets, considering factors such as the company's financial status and management performance.
• Preference for stable companies that are not sensitive to economic fluctuations.This minimizes risk associated with market volatility and aims for stable returns.

Fidelity Income Fund has demonstrated consistent performance over a long period of time. Since its launch in 2003, it has recorded an average annual return of approximately 6%, and its return over the past 10 years has been over 30%, which is considered high.

This is a suitable product for investors seeking stable returns, but as the stock market is volatile, the return on investment may fluctuate, therefore, thorough review is necessary before investing..

Understanding Fund Management Strategies and Investment Portfolios

This fund adopts a proactive management strategy.This means that the fund manager analyzes market conditions, proactively selects investment targets and manages them. This involves extensive research and analysis of companies, assessing the potential and risk of each individual stock.

The portfolio is regularly rebalanced, adjusting investment weights, adding new stocks or selling existing ones. This process helps maintain the fund's target return and risk levels.

As of March 31, 2023, the fund's main investment sectors are Finance (23%), Consumer Staples (17%), Healthcare (14%), Industrials (12%), Utilities (11%), etc. The top 10 holdings include Wells Fargo Bank, American Tower, Pfizer, Johnson & Johnson, UnitedHealth Group, etc.

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Profitability Analysis: Dividends and Interest Income

The average dividend per share over the past 12 months was $1.64, representing 2.9% of the fund's net asset value (NAV) per share. The average dividend payout ratio over the past 5 years was approximately 78%.

Interest income is another source of income for the fund. As of March 31, 2023, approximately 40% of total assets are invested in assets that generate interest income. This primarily includes US government bonds and other fixed-income securities.

Risk Management and Diversification Importance for Investors

The fund's main goal is to provide stable income, but investment always involves risk. Fidelity Income Fund is actively managed and may be exposed to market volatility.

To mitigate these risks, the fund maintains a diversified portfolio. It invests across a range of asset classes, including stocks, bonds, and cash, and diversifies investment targets globally. This diversification strategy provides investors with the opportunity to achieve stable returns while minimizing potential losses.

Exploring Investment Target Asset Classes

The following are the main asset classes that are investment targets for this fund.

• Stocks: Securities representing ownership in a company, offering high potential returns but also high risk. The fund invests in stocks of various sizes, including large-cap, mid-cap, and small-cap.
• Bonds: Debt instruments where the issuer borrows money from investors and promises to repay it with a fixed interest rate over a specific period. The fund invests in various types of bonds, including government bonds, corporate bonds, and municipal bonds.
• Cash equivalents: Assets with high liquidity, primarily invested in short-term financial instruments. They are used as a hedge against market volatility and can be quickly converted to cash when needed.

Each asset class has unique characteristics and risk/return profiles, so investors need to build a portfolio that aligns with their investment goals and risk tolerance.

Evaluating Returns and Performance Metrics

Various indicators are used to assess the performance of a fund. The most fundamental indicator is return on investment.

• Annual return: Indicates the total return on investment of the fund over the past year.
• Quarterly return: Shows the fund's return over the past quarter.
• Recent return: Indicates the fund's return over the past week, month, or three months.

These returns are useful for understanding the historical performance of the fund, but do not guarantee future performance.

Other key performance metrics include the Sharpe Ratio, Jensen's Alpha, Treynor Ratio , etc. These indicators measure the risk-adjusted return on investment and help to evaluate the fund manager's performance capabilities.

Introduction to Subscription Methods and Investment Procedures

To subscribe to Fidelity Income Fund, you must follow these procedures:

• Account opening: You can open an online account through Fidelity Financial Group's website or mobile app, or you can open an offline account by visiting a Fidelity Financial Group branch.
• Determining investment amount: Determine the amount you wish to invest. Minimum investment amounts vary depending on the fund, so verification is required.
• Fund selection: Select Fidelity Income Fund. You must select the appropriate fund, considering factors such as fund type, investment target, and management strategy.
• Investment application: After depositing the investment amount into your account, complete the fund investment application. You must specify the investment period, investment purpose, etc.
• Investment approval: Fidelity Financial Group will review the investment application and decide whether to approve the investment. Once approved, investment in the fund begins.
• Investment management: After investing, you should regularly check the fund's return on investment, asset composition, etc., and modify the investment strategy as needed. You should also check for additional costs such as fees.

Factors to Consider When Choosing a Fund

To choose the right fund among a variety of funds, you need to consider a few key factors. Here are some factors to consider when choosing Fidelity Income Fund.

• Goals and risk tolerance: Funds have varying risk levels, so you need to choose a fund that aligns with your investment goals and risk tolerance. If you are looking for high returns, you can choose a high-risk fund, but if you want stable returns, you can choose a low-risk fund.
• Returns and performance: Analyze past returns and performance to assess the fund's track record. It is best to choose a fund with consistent performance over a long period of time.
• Fees and expenses: Funds have management fees, sales fees, and other expenses. You need to choose a fund considering these costs, and it is best to find a fund with the lowest possible expenses.
• Asset allocation: You need to check the fund's asset allocation to understand how its assets are distributed across different asset classes, such as stocks, bonds, and cash. Choosing a fund with a balanced asset allocation can reduce the overall risk of your portfolio.
• Management strategy: You should understand the fund's management strategy and make sure it aligns with your investment goals. Active management and passive management can have different performance and risk levels.

By considering these factors, selecting Fidelity Income Fund can lead to more successful investment outcomes.

As this is a product suitable for long-term investment with stable returns and low volatility, if you are considering retirement planning or retirement fund management, we encourage you to take a look at it.