Duration: Understanding the Relationship Between Bond Prices and Interest Rates - Fidelity

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Mutual Funds and Mutual Fund Investing - Fidelity Investments

Clicking a link will open a new window. using Fidelity's Guided Portfolio SummarySM (GPS) to see at a glance the weighted average duration of your fixed income holdings at Fidelity. The duration of your fixed income investments is also plotted on a grid in comparison to the benchmark. to see the duration of your bonds, CDs, and bond funds. Also, model the hypothetical addition to your portfolio of new bonds to see how they might impact the duration of the overall portfolio. in the bond fund's online profile under Portfolio Data. from either the Snapshot page or Key Statistics, where the duration of the specific ETF can be compared to the asset class median duration. under each bond's Bond Details page. As you review potential bond investments, you can easily compare duration and other characteristics between two bonds using this tool.

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It's easy—opening your new account takes just minutes. Select from a variety of individual bonds, CDs, or bond funds. Learn about bonds, CDs, bond funds, and other investments.

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Your e-mail has been sent. Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. Duration is a measure of a security’s price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security’s interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest rate resets, and call options) when applicable. Securities with longer durations generally tend to be more sensitive to interest rate changes than securities with shorter durations. A fund with a longer average duration generally can be expected to be more sensitive to interest rate changes than a fund with a shorter average duration. The Fixed Income Analysis tool is designed for educational purposes only, and you should not rely on it as the primary basis for your investment, financial, or tax planning decisions. Fidelity Guided Portfolio SummarySM (Fidelity GPSSM) is provided for educational purposes only and is not intended to provide legal, tax, investment, or insurance advice, nor should it be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Fidelity or any third party. You are solely responsible for determining whether any investment, investment strategy, security, or related transaction is appropriate for you based on your personal investment objectives, financial circumstances, and risk tolerance. You should consult your legal or tax professional regarding your specific situation. 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. Any fixed income security sold or redeemed prior to maturity may be subject to loss. Diversification and asset allocation do not ensure a profit or guarantee against loss. Exchange-traded products (ETPs) are subject to market volatility and the risks of their underlying securities, which may include the risks associated with investing in smaller companies, foreign securities, commodities, and fixed income investments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets. ETPs that target a small universe of securities, such as a specific region or market sector, are generally subject to greater market volatility, as well as to the specific risks associated with that sector, region, or other focus. ETPs that use derivatives, leverage, or complex investment strategies are subject to additional risks. The return of an index ETP is usually different from that of the index it tracks because of fees, expenses, and tracking error. An ETP may trade at a premium or discount to its net asset value (NAV) (or indicative value in the case of exchange-traded notes). The degree of liquidity can vary significantly from one ETP to another and losses may be magnified if no liquid market exists for the ETP's shares when attempting to sell them. Each ETP has a unique risk profile, detailed in its prospectus, offering circular, or similar material, which should be considered carefully when making investment decisions. A bond ladder, depending on the types and amount of securities within it, may not ensure adequate diversification of your investment portfolio. While diversification does not ensure a profit or guarantee against loss, a lack of diversification may result in heightened volatility of your portfolio value. You must perform your own evaluation as to whether a bond ladder and the securities held within it are consistent with your investment objectives, risk tolerance, and financial circumstances. To learn more about diversification and its effects on your portfolio, contact a representative. Fidelity Brokerage Services LLC, Member NYSE, , 900 Salem Street, Smithfield, RI 02917 654628.7.0

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