Fidelity Investments exterior and trademark logo signage, Woodbury, Minnesota, January 2020. © Ken Wolter/Dreamstime.comFidelity Investments is one of the largest asset managers in the United States. Headquartered in Boston, it is notable for being privately held in an industry dominated by publicly traded companies. As of 2025, Fidelity oversees $15 trillion in assets under administration (AUA) and manages $5.9 trillion in assets under management (AUM) through its own mutual funds, exchange-traded funds (ETFs), and managed accounts.

　　The remaining AUA include individual stocks, bonds, and third-party funds held in brokerage and retirement accounts. Fidelity accounts for about 10% of the U.S. asset management market, trailing only Vanguard at 29% and BlackRock (BLK) at 12%.

　　How Fidelity is structuredFidelity Investments, commonly known as Fidelity, is the primary business of FMR LLC, a privately held company led by the Johnson family. FMR also operates Devonshire Investors, a private investment arm that manages alternative assets including private equity, real estate, and venture capital. In addition, it runs F-Prime Capital Partners, a separate unit focused exclusively on venture capital.

　　One exception is Vanguard Group, which is also not publicly traded. But its structure is different: Vanguard is owned by its funds, which are in turn owned by the investors in those funds.

　　Being privately held allows Fidelity more control over its long-term strategy and shields it from the pressure of quarterly earnings reports. But it also means less public transparency and fewer disclosure requirements than its publicly traded peers.

　　Investment products and servicesFidelity offers a range of investment options for individuals, including stocks, bonds, certificates of deposit (CDs), options, cryptocurrency, and precious metals. Customers can also choose from mutual funds and ETFs managed by Fidelity or third-party providers. Other products include traditional and Roth individual retirement accounts (IRAs), health savings accounts (HSAs), 529 college savings plans, life insurance, and credit and debit cards.

　　For employers, Fidelity provides retirement and health benefit programs, along with services for student debt relief and charitable giving. It also manages employee stock plans and provides recordkeeping services for private and public companies. In addition, it operates a corporate development initiative focused on partnerships, investments, and acquisitions.

　　Charitable work  and controversiesEstablished by Fidelity in 1991, Fidelity Charitable is a 501(c)(3) nonprofit that sponsors donor-advised funds, accounts that let individuals establish a fund for charitable giving. Donors receive an immediate tax deduction and recommend grants to nonprofits over time. Each grant is reviewed and approved by Fidelity Charitable, which retains final authority over disbursements.

　　Fidelity Charitable’s “cause-neutral” policy has drawn criticism from advocacy groups for approving grants to organizations labeled as hate groups by the Southern Poverty Law Center, a civil rights organization. Nearly $5 million in grants went to 31 such groups from 2015 to 2017, according to media reports. The criticism became public in 2016, prompting protests and demands for Fidelity to clarify how it determines which organizations are eligible to receive funding. In response, Fidelity Charitable has said it aims to follow donor intent while staying within legal and regulatory requirements.

　　Technology and policy effortsTo improve how customers manage their investments online, Fidelity has two groups—Fidelity Labs and the Fidelity Center for Applied Technology—that test and develop new tools for the company’s websites, mobile apps, and other digital systems. Fidelity Digital Assets, a subsidiary launched in 2018, focuses on cryptocurrency, offering custody, trading, and management services for assets like Bitcoin.

　　The company also lobbies on a range of policy issues, including paperless document delivery, student debt reform, and financial literacy education.

　　1946–1960: Mutual fund metamorphosisFidelity Management & Research Company was founded in 1946 by Edward C. Johnson II to serve as the investment advisor to the Fidelity Fund, where he had previously been president and director. The company introduced its second mutual fund the following year.

　　Fidelity stood out from earlier fund managers by focusing less on preserving capital in large, established blue-chip stocks and more on companies with strong growth potential. This approach expanded with the launch of two aggressively managed equity funds: Fidelity Trend Fund (FTRNX) and Fidelity Capital Fund (dissolved in 2012). Gerald Tsai Jr., who managed the Capital Fund, helped popularize momentum investing, a strategy built on buying stocks on the rise and selling them as their growth slowed.

　　1960–2000: Expansion and market crashesFidelity continued to expand its products and services throughout the 1960s and ’70s, introducing retirement planning for individuals and businesses, money market funds, as well as a voice-activated phone system that provided investors with information about mutual funds 24 hours a day. It also launched the Fidelity Daily Income Trust, the first money market fund to offer checkwriting.

　　Three years later, Edward C. “Ned” Johnson III succeeded his father as chairman and CEO of the company. By 1987, Fidelity offered more than 70 mutual funds, including sector-specific funds (such as electronics and real estate), international stock and bond funds, and more than 20 money market funds.

　　There were also challenges. Fidelity wasn’t immune to the 1987 stock market crash. On Black Monday, October 19, the company sold more than $850 million in stock—roughly 4.5% of all trades on the New York Stock Exchange (NYSE) that day—as investors rushed to pull their money from mutual funds. Despite the turmoil, Fidelity rebounded in the years that followed. By 1996, it had grown into one of the country’s largest asset managers, overseeing $509 billion in assets.

　　2000–present: Leadership changes and diversificationIn 2001, Abigail Johnson, daughter of Johnson III, was named president of the company’s asset management division, overseeing mutual funds and other investment products. Her performance drew criticism, and in 2005, she was reassigned, raising questions about whether she would eventually take over the family-run business. Despite the setback, she became company president in 2012 and succeeded her father as CEO in 2014.

　　Abigail P. Johnson, Chairman and Chief Executive Officer of Fidelity Investments, during a discussion with moderator Srikant Datahr, Harvard Business School, Dean at the Greater Boston Chamber of Commerce annual meeting in Boston on May 17, 2022.© Barry Chin—The Boston Globe/Getty ImagesDuring the 2000s, Fidelity was also subject to several high-profile regulatory actions. In 2004, the company paid $2 million in penalties, split evenly between the Securities and Exchange Commission (SEC) and the NYSE, for altering or destroying documents at more than 20 branch offices ahead of scheduled inspections. In 2008, the SEC charged Fidelity and several employees with accepting more than $1.6 million in gifts, travel, and entertainment from brokers seeking business. Fidelity settled the charges by paying an $8 million fine and reimbursing the funds affected.

　　Subprime mortgage crisisFidelity felt the repercussions of another broad market event—this time brought on by the 2007–08 financial crisis, triggered by a bursting housing bubble and the collapse of mortgage-backed securities tied to risky subprime loans. Assets under management and operating income both declined by roughly 20%, although the company fared better than some competitors, which saw losses of 30% to 40%. Industry-wide, the average decline in assets was about 23%.

　　In the 2010s, Fidelity had to contend with changes in the fund industry. Customers were pulling away from actively managed mutual funds, long Fidelity’s bread and butter, and shifting toward low-cost, passively managed options like index funds and ETFs. Fidelity responded by expanding its ETF lineup, lowering fund expenses, and emphasizing its investment research capabilities. In 2022, it became the first major retirement-plan provider to offer Bitcoin as a 401(k) investment option.

　　F-Prime draws scrutinyA 2016 Reuters investigation raised concerns about F-Prime Capital Partners, the private venture capital firm owned by the Johnson family. The report found that F-Prime had acquired early stakes in private companies that later went public—opportunities that weren’t available to Fidelity’s mutual fund investors because of regulatory restrictions. Although legal, the arrangement prompted criticism that the family may have benefited from deals unavailable to the customers whose money helped grow the business.

　　Fidelity’s legacy and influenceFidelity has often been an early mover in launching new financial products and strategies. From mutual funds to Bitcoin, it has helped shape the investment industry and how consumers invest, and remained a steady presence through multiple market downturns. Its gradual diversification—without abandoning its mutual fund roots—has helped it grow into one of the most influential investment companies in the U.S.

　　Frannie Comstock