Fidelity Strategic Real Return Fund Class K6 is a mutual fund designed to provide real, inflation-adjusted returns with a moderate level of investment risk. The fund employs a diversified strategy by allocating assets across four main categories: inflation-protected debt securities, floating rate loans, commodity-linked derivative instruments, and real estate investment trusts (REITs) and related investments. This balanced approach aims to defend purchasing power against inflation by combining asset classes that historically respond differently to changing economic environments. The fund typically uses a neutral mix, allocating approximately one-quarter of its holdings to each category, adjusting as needed to reflect market conditions. Notably, its portfolio can include both domestic and international issuers, enhancing its diversification. With a focus on moderate risk and a below-average expense ratio among peers, this fund is often utilized by investors seeking to preserve long-term capital while generating real returns above inflation. Its role in the market is to offer a multi-asset solution for those looking for inflation protection paired with risk management, complementing more traditional equity or fixed income allocations.
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