| Investment Products Fixed Income Evaluating a Bond Fund Every fund's prospectus outlines important information that can help you find the fund that may be right for you. The characteristics explained below are important factors that can help you evaluate your bond fund investment. Prospectuses for both Fidelity funds and FundsNetwork funds can be found in Products > Mutual Funds . Or use the Fund Evaluator to find a fund that meets your criteria. Investment Goals Bond funds have specific investment goals, such as pursuing high income or preservation of capital. Bond funds may follow different investment guidelines in order to pursue those goals. For example, some funds may limit their investments to U.S. government and government agency investments while other funds may invest in different bond sectors including corporate, government, government agency, and mortgage-backed bonds. The prospectus will state the fund's goals and investment guidelines. Top Average Maturity A bond fund maintains a dollar-weighted average maturity, which is the average of all the current maturities of the individual bonds in the fund. The longer the average maturity, the more sensitive the fund will be to changes in interest rates. Funds with "short-term," "intermediate-term," or "long-term" in their names indicate the average maturity the fund targets. The longer the average maturity, the more potential for fluctuation in share price. Funds with "short-term," "intermediate-term," or "long-term" in their names indicate the average maturity the fund targets. | |
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