29 Sep Fidelity Investment Advisory Agreement

Fidelity Investment Advisory Agreement: Understanding the Basics

Investing your money is a crucial decision, and it’s important to partner with a trustworthy financial advisor. Fidelity Investments is one of the leading investment firms in the United States, offering a wide range of investment products and services to help you achieve your financial goals.

If you are considering hiring Fidelity Investment as your financial advisor, you will need to sign a Fidelity Investment Advisory Agreement. In this article, we’ll discuss the basics of this agreement and what you should know before signing it.

What is a Fidelity Investment Advisory Agreement?

A Fidelity Investment Advisory Agreement is a legal document that outlines the relationship between you and your financial advisor. By signing this agreement, you are authorizing Fidelity to manage your investment portfolio on your behalf. The agreement also specifies the terms of the relationship, including fees, responsibilities, and guidelines for investing your money.

What does the agreement include?

The Fidelity Investment Advisory Agreement includes the following:

1. Services: Fidelity will provide investment advisory services, including managing your investment portfolio, monitoring the markets, and making recommendations based on your financial objectives.

2. Fees: The agreement outlines the fees you will pay Fidelity for their services, including asset-based fees, transaction fees, and other expenses.

3. Investment guidelines: The agreement specifies the investment guidelines Fidelity will follow when managing your portfolio, including risk tolerance, investment objectives, and other requirements.

4. Termination: The agreement outlines the circumstances under which either you or Fidelity can terminate the relationship.

What should you consider before signing the agreement?

Before signing a Fidelity Investment Advisory Agreement, there are several things you should consider:

1. Fees: Make sure you understand all the fees outlined in the agreement and how they will be charged. Ask your financial advisor to explain any fees that you don’t understand.

2. Investment guidelines: Make sure you agree with the investment guidelines outlined in the agreement, including risk tolerance, investment objectives, and other factors.

3. Termination: Understand the circumstances under which you or Fidelity can terminate the relationship and what fees or penalties may apply.

4. Other services: Consider whether you want to use other services offered by Fidelity, such as financial planning or tax preparation.

Conclusion:

A Fidelity Investment Advisory Agreement is an important legal document that outlines the relationship between you and your financial advisor. By understanding the basics of the agreement, including fees, investment guidelines, and termination clauses, you can be confident that you are making an informed decision about partnering with Fidelity Investments. Remember, it’s always important to read and understand any legal document before signing it.