Fidelity Investments has updated its teen-oriented Youth App by launching three investment "baskets" that reflect its young investors' interests.
Fidelity Youth Baskets, introduced this week and based on a survey of active Fidelity Youth app users, comprise three thematic investment baskets each containing 10 individual investments: clothes, shoes and beauty; gaming, social media and connectivity; and entertainment.
Similar to Fidelity's existing basket portfolios offering for adult investors, each teen basket contains multiple stocks managed like a single investment. Teens under age 18 do not have the ability to change or customize the investments included in each basket, a Fidelity spokesperson told ThinkAdvisor via email Thursday.
"One of our primary goals in launching the Fidelity Youth app was to not only make financial education more accessible to teens, but also give them an opportunity to put those learnings into action," Kelly Lannan, Fidelity's Emerging Customers senior vice president, said in a release.
"Teens are interested in investing but are often overwhelmed by their options and unsure where to start. With the new baskets capability, we're helping teens learn how to diversify their portfolios in a simplified experience based on direct feedback from teens themselves," Lannan explained.
The investment giant describes Fidelity Youth Baskets as "an industry first." Teens who purchase an investment using Fidelity Youth Baskets will be given access to an educational video teaching them about investing in the baskets.
