With the rise of robo-advisors and automated investing platforms, it has become easier than ever for individuals to grow their wealth by setting up automatic investments. One popular platform that offers this feature is Fidelity’s mobile app. By enabling automatic investments on the Fidelity app, users can conveniently invest in mutual funds, ETFs and other securities on autopilot. This hands-off approach takes the hassle out of manually making deposits and purchasing investments. In this article, we will explore the key information and benefits of using Fidelity’s automatic investing feature to grow your wealth over time.
Seamlessly scheduled deposits build your portfolio
The Fidelity app allows users to set up scheduled transfers from their linked bank account to their Fidelity account. This automated funding schedule lets you steadily build up your investment portfolio by having a set amount regularly transferred to your investment account for purchases. Consistent deposits over months and years harness the power of dollar cost averaging and compound growth. Hands-off convenience also helps less disciplined investors stay committed to regular investing vs sporadic lump sums.
Automated trades on your behalf simplify investing
In addition to scheduled deposits, the Fidelity app can automatically use those funds to make trades on your behalf based on your selected investment mix. This takes the legwork out of manually making the buys. Just set your portfolio allocation, investment minimums, frequency and Fidelity will handle the ongoing buys of mutual funds, ETFs, stocks etc per your criteria. The automation keeps your portfolio invested and in balance vs cash dragging.
Fractional share purchases maximize every dollar
Unlike some brokers that require full share purchases, Fidelity allows dollar based fractional share buys. This maximizes your automatic deposits and keeps every dollar invested vs cash leftovers. Buying fractional slices of shares on autopilot lets you gain diversified market exposure with minimal money. It removes barriers to investing for those without thousands to fund full shares upfront.
Stay the course through up and down markets
Automated scheduled investing helps investors stay disciplined through up and down markets. When prices dip, your regular automated buys acquire shares at a discount vs their highs. This dollar cost averaging can lower your cost basis over time. Hands-off convenience also prevents you from getting spooked and stopping deposits during downturns. Auto-investing provides forced discipline that pays off long term.
In summary, enabling automated recurring deposits and investments on the Fidelity app provides a convenient way for any investor to grow their wealth over time. Dollar cost averaging, constant portfolio balance, fractional share trading and forced discipline are key benefits of the automation. For long-term investors, letting Fidelity’s app invest your money on autopilot can simplify the process and help you reach your goals.