Index Fund Investing - Fidelity (first time investor)

Hi everyone,

I am a first time investor and just finished this course. I am 28 years old. I have chosen to invest in the FDKLX target date index fund in Fidelity. So far I have put $100 and it’s been in there for a month. Within this month, this $100 has fluctuated by rising and then dropping, and is currently at $97. I want to invest more into this fund, but I guess I am just wondering when to expect a more consistent growth, where it’s actually visible and obvious? Am I supposed to just be patient? Or should I choose a different index fund?

Any help is appreciated, thank you.

You can expect consistent growth over time wirh consistent investment. Compounding is most visible around the $100k mark over time.

For me, growth started really becoming visible after consistent investing around the 6byear mark but i have less than $50k in retirement funds. You want to look at your time horizon in decades, not days.

Also bigger amount = more gains/losses in day to day investing.

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Hi @leilautumn!

Thank you for your message! I like the approach you are taking with the target date fund. Yes, being patient is the best approach! When you are young and just starting your investing journey, the best course of action is to keep investing and not worry too much about short term volatility. Your future self will thank you!

We are actually working on a post right now that shows the historical chance of experiencing a positive return in the stock market. The numbers are below for your reference. Expect to see a post from us on this topic soon. But, as you can see…over the course of a month of even a few years, anything can happen. But the more time you spend invested in the market, the higher the chance of growing and compounding your money!

1 Month - 62%
1 Year - 74%
5 Years - 84%
10 Years - 95%
15 Years - 100%