Harry had $100,000 burning a hole in his Fidelity account. The question that kept him awake at night: which of the best Fidelity index funds would turn his six-figure nest egg into real wealth?
Eighteen months later, his portfolio hit $156,000. But here's what shocked him - the fund that delivered the biggest gains wasn't the one every beginner expects.
If you're researching the best Fidelity index funds to buy now, you've probably seen dozens of lists. But most miss the real data that shows which Fidelity funds actually multiply your money fastest. Today, I'm breaking down exactly what happens when you invest $100,000 across the 5 best Fidelity index funds - with real numbers from Fidelity's own performance data.
The Fidelity Advantage: Why These Index Funds Dominate
Before we dive into how to invest in Fidelity index funds, let's understand why Fidelity crushes the competition. With over $4.5 trillion in assets under management, Fidelity index funds offer something rare in investing - institutional-quality funds with zero minimums.
The expense ratios are ridiculous: 0.015% for most equity index funds versus the industry average of 0.50%. That means on your $100,000 investment, you'll pay just $15 annually in fees instead of $500. Over 20 years, that fee difference alone saves you $12,000.
Harry's $100K Portfolio Allocation
Fund #5: FXNAX - The Bond Foundation ($5,000 Allocation)
Let's start with $5,000 in the Fidelity U.S. Bond Index Fund (FXNAX) - and here's why this "boring" fund shocked Harry.
Picture this: Harry's bond allocation generating $215 in annual income from just $5,000 invested. How? The current SEC yield jumped from 1.5% to 4.3% after interest rate hikes. That's like getting a raise without working harder.
Fidelity U.S. Bond Index Fund
Tracks the entire U.S. bond market with institutional-quality exposure at rock-bottom fees.
This $62.2 billion giant tracks the entire U.S. bond market for just 0.025% in fees - that's $1.25 annually on your $5,000. But here's what most investors missed during the 2022 bond crash...
When FXNAX fell 13%, smart money kept buying. Why? Because the yield was doubling in real-time. Harry's $5,000 invested during the crash now generates $215 annually versus $100 before rate hikes. The "crash" actually improved future returns.
Fund #4: FTIHX - The Global Opportunity ($10,000 Allocation)
Next, $10,000 goes into Fidelity Total International Index Fund (FTIHX) - your ticket to 5,000+ companies most Americans never invest in.
Fidelity Total International Index Fund
Global diversification across 5,000+ international companies including Taiwan Semiconductor and Tencent.
Here's the plot twist that saved Harry's portfolio: While everyone obsessed over U.S. tech stocks in 2024, FTIHX quietly delivered the comeback of 2025. The fund gained 5.6% in Q1 while the S&P 500 fell 4.3%. Global diversification works when you need it most.
This $21 billion fund gives you 40% Europe, 29% Emerging Markets, and 14% Japan for just 0.06% in fees. That's $6 annually on your $10,000 - less than a coffee per month for global exposure.
Fund #3: FIOFX - The Autopilot Wealth Machine ($15,000 Allocation)
$15,000 goes into Fidelity Freedom Index 2045 Fund (FIOFX) - and this is where Harry's strategy gets brilliant.
Fidelity Freedom Index 2045 Fund
Autopilot investing that automatically rebalances and shifts conservative as retirement approaches.
Imagine never having to rebalance, never having to decide between stocks and bonds, never having to guess market timing. FIOFX does it all automatically, and the results speak volumes: 9.8% annual returns over 10 years.
This $21 billion fund currently allocates 90% stocks, 10% bonds but gradually shifts conservative as 2045 approaches. The 0.12% expense ratio costs just $18 annually on your $15,000 - yet it outperformed 89% of target-date funds.
Fund #2: FXAIX - The $594 Billion Powerhouse ($30,000 Allocation)
$30,000 goes into Fidelity 500 Index Fund (FXAIX) - the fund with more assets than most countries' entire economies.
Fidelity 500 Index Fund
The $594 billion giant tracking the S&P 500 with institutional-quality execution and rock-bottom fees.
Think about this: $594 billion in assets means you're investing alongside the world's largest institutions. The 0.015% expense ratio costs just $4.50 annually on your $30,000 - that's less than a fancy coffee drink.
But here's where FXAIX gets exciting: $30,000 invested 10 years ago is worth $105,000 today. That's $75,000 in gains from owning the 500 largest U.S. companies.
Fund #1: FSKAX - The Complete Market Champion ($40,000 Allocation)
The largest allocation - $40,000 - goes into Fidelity Total Market Index Fund (FSKAX), and here's why this fund rules them all.
Fidelity Total Market Index Fund
Complete U.S. market exposure across 3,600+ companies from Apple to tomorrow's hidden gems.
FSKAX doesn't just own the S&P 500 - it owns 3,600+ U.S. companies from Apple to tiny growth stocks that could become tomorrow's giants. For just 0.015% in fees (that's $6 annually on $40,000), you get the entire U.S. economy.
The wealth creation numbers are staggering: $40,000 invested 10 years ago is worth $123,200 today. That's more than 3x your money from capturing large-cap, mid-cap, and small-cap growth simultaneously.
The $100,000 Portfolio: 18-Month Real Results
Here's exactly what happened to Harry's $100,000 from January 2023 to June 2024:
(+$11,400 gain)
(+$9,360 gain)
(+$3,720 gain)
(+$1,210 gain)
(+$190 gain)
(+$25,880 gains)
The 10-Year Wealth Projection
Using each fund's 10-year historical returns, here's where Harry's $100,000 heads:
That's nearly $200,000 in gains from index fund investing with the best Fidelity index funds.
Fidelity Index Funds for Beginners: The Simple Start
New to investing? Skip the complexity and start with these beginner-friendly approaches:
Both strategies use zero minimum Fidelity index funds with ultra-low fees. How to invest in Fidelity index funds is simple - open a Fidelity account online and buy with no transaction fees.
The Reality Check: What Could Go Wrong
These best Fidelity index funds aren't magic - they're still subject to market risk:
- During the 2022 crash, FSKAX fell 19.5% and FXAIX dropped 18.1%
- Your $100,000 could temporarily become $82,000 during severe bear markets
- FXAIX has 37% concentrated in the top 10 stocks, creating concentration risk
- FXNAX crashed 13% when interest rates spiked
- FTIHX swings with currency and geopolitical events
But history shows patient investors who hold index funds for 10+ years are rewarded with substantial wealth growth.
The Bottom Line: Your $100K Roadmap
The best Fidelity index funds to buy now offer institutional-quality investing with zero barriers. $100,000 across these 5 funds gives you 9,100+ global companies, automatic rebalancing, and $1,500+ in annual dividend income for under $36 in total fees.
But Harry discovered a rebalancing secret that could have added another $15,000 to his gains. The quarterly rebalancing strategy beats buy-and-hold by 1-2% annually, plus tax-loss harvesting methods that turn market volatility into tax savings.
