March 5, 2018 / 1:29 PM / 9 months ago

Factbox: Market sell-off shows increased risk in Fidelity funds

FILE PHOTO: A sign marks a Fidelity Investments office in Boston, Massachusetts, U.S. September 21, 2016. REUTERS/Brian Snyder/Files

(Reuters) - Fidelity’s target-date fund franchise, the Freedom Funds, have performed better than most rivals since a strategy overhaul in 2014 ramped up risk to improve performance.

But the increased volatility for retirement investors was on display during a recent market sell-off, between Jan. 26 and Feb. 8, that sent stock prices down. During that period, Freedom Funds for older savers - those nearest to retirement - substantially underperformed their target-date peers.

Fidelity funds for younger savers generally did better, relative to competitors.

Reporting by Tim McLaughlin; Editing by Brian Thevenot

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