Untimely Changes in Fidelity Mutual Funds System

By , in Mutual Funds.

Fidelity Mutual Funds is the largest mutual funds companies in the United States. They have over 300 different mutual funds that showed relative successes in marketing their funds especially those that focus on retirement investments for employees and companies alike.

401 retirement programs became extremely popular for baby boomers or those who are set for retirement and for the employers who have considered replacing their companies’ retirement plans. To take considerable market share, Fidelity Mutual Funds aggressively established their funds to become the favored investment vehicle among employees and companies who are active in participating on the 401(K) programs.

During the mid-90s, computers and internet have just started to take their places in the homes. Though this is the case, Fidelity Mutual Funds took the initial advantages of the systems. They created a method for which the investors need not have to avail of the intervention of Fidelity Mutual Funds employees to be able to make transactions. And during this time, the company sustained its focus on investment funds while creating and recreating various funds that are designed specifically for the myriad of investors subscribing to their programs.

In their mission to provide services for all forms of market, they continued extending their services by introducing programs such as retirement planning, estate planning, discount brokerage, programs on wealth management and others. However some of these funds restricted the growth of the Fidelity Mutual Funds Companies. Consequently, they closed some of their programs and opened newer programs that are typically like their previous programs. This is done to copy the accomplishments of their former programs.

Though many of these re-cries were successful, the natural process of the stock market and economy in the year 2000 impeded their further growth. These obliged them to consolidate their services and to trim down their employees. Since there is lesser number of physical forces, they considered shutting down some of their businesses. Some did come true.

What they have learned with their almost-failure strategy? Only that the scheme will work only if there is an ample market for expansion. However, by this strategy they insighted that it is easier to merge, and even acquire, the shares of smaller companies than themselves rather than merging with large companies.

The result of their strategy proved that with too many services, lesser focus would be maintained. But given that the market is sturdy, unlike with the case of the Fidelity Mutual Funds, their approach would have worked.