Fidelity's short duration bond funds
Short duration bond funds may be an option for investors that are concerned about rising interest rates or who are seeking a higher level of income compared to other short-term investments.
Short-term bond funds invest primarily in corporate and other investment-grade U.S. fixed-income securities and generally have durations1 of one to three and a half years. These portfolios can be attractive to more conservative investors because they are less sensitive to interest rate volatility than portfolios with longer durations.
Seek more from your cash amid higher rates
Many investors have a high concentration of assets in cash – and yields on bank deposits may not keep up with interest rate increases. Finding an appropriate choice for short-term cash investment depends on an investor’s situation. Bond funds that have a shorter duration can be smart choices for people who want better short-term returns than a savings account but less market risk than bond funds with longer durations.2
Discover more
Fidelity offers several investments options that provide exposure to short-term bonds, as part of an overall diversified portfolio.
Mutual Funds
Fidelity® Conservative Income Bond Fund (FCNVX)
Fidelity® Conservative Income Municipal Bond Fund (FMNDX)
Fidelity® Limited Term Bond Fund (FJRLX)
Fidelity® Limited Term Government Fund (FFXSX)
Fidelity® Limited Term Municipal Income Fund (FSTFX)
Fidelity® Short Duration High Income Fund (FSAHX)
Fidelity® Short-Term Bond Fund (FSHBX)
Fidelity® Sustainable Low Duration Bond Fund (FAPGX)
Next steps
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Why invest in short term bonds in today's market environment?
Watch this video to learn why investors may find short-term bond funds attractive in the current environment.
