Investing

Investing is when you buy something in hopes that it’ll appreciate (aka increase in value). People can invest in many ways, but in the financial world, investing most often refers to buying an asset, like a mutual fund, that you expect will help you grow your money over time.

Investing is a way to make your money work for you—and give it a chance to potentially grow more than it could if it were sitting in a savings account.

Keep in mind that there are no guarantees with investing.

You can start investing in Fidelity Bloom^® with as little as $1.

When you deposit money into either of your Fidelity Bloom^® accounts, it is placed in a low-risk money market mutual fund that allows it to earn returns. This is also referred to as your “core position.”

The money you deposit into your Fidelity Bloom Save account will remain there unless you decide to transfer it or buy other investments with it using the Fidelity Bloom app, the Fidelity Investments app, or Fidelity.com.

The money you deposit into your Fidelity Bloom Spend account cannot be used to purchase investments within the Fidelity Bloom app, but you may purchase investments within this account using the Fidelity Investments app or Fidelity.com.

In Fidelity Bloom^®, the money you have available to invest is in your Fidelity Bloom Save account. Once you transfer money into your Save account, you can buy investments in this account.

• Once you’ve added money to your Save account, tap the "Save" account tile on the Home tab.
• Tap the "Investments" tile.
• Browse mutual fund collections directly or learn more through lessons and tools.
• Use the Browse tab to find investments, then tap the individual investment you want to buy.
• Tap “Buy” and confirm the amount and price of your trade.
• Tap “Buy” again to complete your trade.

Fidelity Bloom^® allows you to invest your money in a specific set of low-cost mutual funds.

This means all the mutual funds offered by Fidelity Bloom have expense ratios of 1% or less. An expense ratio is an annual fee that covers the costs of operating the mutual fund you're investing in.

Here's a simplified example: Let's say you invest $10 in a mutual fund with a 1% expense ratio. 10 cents would be taken out to cover the fee and the other $9.90 would be invested.

A mutual fund pools together money from many investors to purchase a collection of stocks, bonds, and other investments. Mutual funds can help you spread your risk out across multiple investments all at once, instead of putting all your money into a single stock or bond.

Investing within the Fidelity Bloom^® app is limited to mutual funds, but you may use the Fidelity Investments app or Fidelity.com to trade stocks and ETFs in either of your Fidelity Bloom accounts.