Fidelity Investments has a new portfolio management service that offers online advice for as little as $20 a year.
Fidelity launched its Fidelity Go service on July 23. The program, which is currently only available in the United States, will construct, monitor, and rebalance investment portfolios for an all-in cost of 0.35% to 0.40% of assets under management; this rate includes not only the advisory fee but also the underlying fund fees.
The company says it developed the program "in collaboration with younger, digitally-savvy investors". The minimum initial deposit is $5,000, and Fidelity notes that work will be performed by professionals and "not simply by an automated robo algorithm."
Geode Capital Management will be responsible for the ongoing management and monitoring of portfolios, and clients will be able to contact Fidelity Go representatives via online chat or by telephone should they require assistance. Investors may use smartphones, tablets, or desktops to access Fidelity Go's digital dashboard where they will be able to deposit and withdraw funds, monitor their progress toward goals, and receive updates and alerts.
Lifetime financial needs
“Fidelity Go makes professionally managed portfolios broadly accessible by helping people move from saving to investing quickly and efficiently, with costs starting at approximately $20 a year,” says Rich Compson, head of managed accounts at Fidelity. “Our goal is to help people meet their lifetime financial needs, and Fidelity Go is a new way for Fidelity to help digital-first investors and those just getting started."