Fidelity Government Cash Reserves Returns Calculator
Calculate historical returns and project future compounding for Fidelity Government Cash Reserves. Test different monthly amounts, tenures, and step-up scenarios using real historical NAV performance.
Category
Money Market (US)
AUM
$1.00 Million
Expense Ratio
0.37%
Fund Manager
Eric S. Graham & Stephanie Merritt
Fidelity Government Cash Reserves Historical SIP Performance & Returns Table
Historical value of standard monthly SIP investments based on actual fund CAGRs.
| Monthly SIP | 3 Years @ 4.9% CAGR | 5 Years @ 3.2% CAGR | 10 Years @ 2.1% CAGR |
|---|---|---|---|
| $100/mo | $3,884 Invested: $3,600 | $6,521 Invested: $6,000 | $13,336 Invested: $12,000 |
| $250/mo | $9,710 Invested: $9,000 | $16,303 Invested: $15,000 | $33,339 Invested: $30,000 |
| $500/mo | $19,421 Invested: $18,000 | $32,607 Invested: $30,000 | $66,678 Invested: $60,000 |
| $1,000/mo | $38,841 Invested: $36,000 | $65,214 Invested: $60,000 | $133,356 Invested: $120,000 |
| $2,500/mo | $97,104 Invested: $90,000 | $163,035 Invested: $150,000 | $333,391 Invested: $300,000 |
* Projections calculated using actual historical 3-year (4.88%), 5-year (3.24%), and 10-year (2.06%) performance data. Actual mutual fund returns fluctuate with market NAV.
Expert Editorial Analysis & Investment Review
Independent, data-driven assessment of Fidelity Government Cash Reserves covering strategy, benchmark tracking, risk metrics, and suitability for long-term DCA / compounding portfolios.
Fund Overview
Fidelity Government Cash Reserves (FDRXX) is one of the financial industryโs most established government money market mutual funds, operating continuously since May 1979. Managing over $243 Billion in assets, FDRXX is designed for investors seeking maximum capital stability, continuous daily liquidity, and consistent current income.
Operating under SEC Rule 2a-7, FDRXX invests at least 99.5% of total assets in short-term U.S. government obligations, Treasury bills, and repurchase agreements fully collateralized by U.S. government securities. The fund targets a stable $1.00 net asset value (NAV) per share.
Who Should Invest
- Fidelity Core Account Holders: Investors looking for a high-safety government cash position to store liquidity inside Fidelity brokerage and IRA accounts.
- Capital Preservation Savers: Savers prioritizing principal protection and immediate liquidity for emergency funds or upcoming financial obligations.
- Conservative Income Seekers: Investors wanting competitive market yield tied to short-term Treasury rates without exposure to stock market volatility.
Key Strengths
- 45+ Year Legacy of Stability: Maintained a continuous $1.00 per share NAV without disruption through every economic crisis and rate cycle since 1979.
- Zero Minimum Investment: Investors can open a position with $0 and invest any dollar increment.
- High Government Backing: Invests virtually 100% of assets in sovereign U.S. government paper and collateralized repos.
- Full Operational Liquidity: Seamlessly integrates with Fidelity checkwriting, debit cards, and automatic bill pay features.
Risks to Consider
- Fed Rate Dependent: Yields adjust up or down in direct correlation with the Federal Reserveโs target interest rate.
- 0.37% Expense Ratio: Slightly higher management fee than institutional Treasury funds or direct Treasury bills.
- Not FDIC Insured: Like all mutual funds, money market funds are not insured by the Federal Deposit Insurance Corporation.
Dollar-Cost Averaging & Cash Reserves
Keeping a portion of your emergency and deployment capital in FDRXX allows you to earn competitive compound interest while executing automated dollar-cost averaging into equity funds like FXAIX or Fidelity Contrafund (FCNTX). Use our interactive calculator tools to plan your long-term wealth strategy.
About Fidelity Government Cash Reserves
One of Fidelity's longest-running government money market funds, established in 1979. FDRXX invests in short-term US government securities and repo agreements to provide high liquidity and income with a stable $1.00 NAV.
Investment Strategy
Government Money Market Strategy โ Invests at least 99.5% of total assets in cash, US government securities, and repurchase agreements fully collateralized by US government securities, targeting maximum safety and liquidity.
Key Facts
- Over 45-year continuous operating track record since 1979
- Maintains a stable $1.00 NAV per share
- Invests at least 99.5% in US government obligations and cash
- $0 minimum investment requirement
Historical Returns
3-Year CAGR
4.88% (Compound Yield)
5-Year CAGR
3.24% (Compound Yield)
10-Year CAGR
2.06% (Compound Yield)
Benchmark
Crane Government Money Fund Index
Money market funds are not FDIC insured.
Top Holdings & Sector Allocation
As of September 2026, Fidelity Government Cash Reserves's portfolio includes:
Top 5 Holdings
- U.S. Treasury Bills & Notes (~55-65%)
- U.S. Government Agency Repurchase Agreements (~35-45%)
- Cash & Cash Equivalents (<1%)
Sector Allocation
U.S. Treasury Debt 58.5%, Government Agency Repos 41.2%, Cash Equivalents 0.3%
Risk & Drawdowns
Near-zero NAV volatility seeking constant $1.00 share price.
Maintained uninterrupted $1.00 NAV throughout historical crises since 1979.
Tax Treatment
Distributions are taxable federally. A portion is state-tax exempt based on direct Treasury holdings.
Who Should NOT Invest in Fidelity Government Cash Reserves?
Long-term investors seeking wealth accumulation or inflation-hedging capital appreciation.
About the Fund Manager
Co-managed by Eric S. Graham (since 2019) and Stephanie Merritt (since 2024) of Fidelity Fixed Income.
Who Is This Fund Suitable For?
Ideal for conservative investors, retirement cash buffers, and Fidelity account holders seeking capital preservation with competitive yield.
More Funds from Fidelity & Similar Schemes
Similar Funds to Consider
- Fidelity Government Money Market Fund (SPAXX)
- Vanguard Federal Money Market Fund (VMFXX)
- Schwab Prime Advantage Money Fund (SWVXX)
Or compare side by side using our main SIP calculator โ you can test different funds with the same investment amount and dates to see which performed better.
Other Tools for Fidelity Government Cash Reserves Investors
- FIRE Calculator โ Plan your retirement corpus with Fidelity Government Cash Reserves as part of your portfolio
- Cost of Delay Calculator โ See how much delaying your SIP in Fidelity Government Cash Reserves could cost you
- SIP vs EMI Calculator โ Compare investing in Fidelity Government Cash Reserves vs paying off loans
Frequently Asked Questions About Fidelity Government Cash Reserves
What is the historical SIP return of Fidelity Government Cash Reserves?
Based on the latest data, Fidelity Government Cash Reserves has delivered an annualized return (CAGR) of 4.88% (Compound Yield) over 3 years, 3.24% (Compound Yield) over 5 years, and 2.06% (Compound Yield) over 10 years. Maintained uninterrupted $1.00 NAV throughout historical crises since 1979.
How is Fidelity Government Cash Reserves SIP return calculated?
SIP returns are calculated using the XIRR (Extended Internal Rate of Return) method. Each monthly installment buys units at the fund's Net Asset Value (NAV) on that specific day. When markets are down, your SIP buys more units, and when markets are up, it buys fewer units (rupee cost averaging). Our calculator replays this exact process using historical NAV data to compute the precise current value of your accumulated units.
How much return would $500 monthly SIP in Fidelity Government Cash Reserves generate over 5 years?
At an estimated annual return rate of 3.24%, a monthly $500 investment ($30,000 total invested) would grow to approximately $32,607 in 5 years, yielding an estimated wealth gain of $2,607. Use our interactive calculator above to test custom amounts with actual historical NAV data.
What are the top holdings in Fidelity Government Cash Reserves?
Fidelity Government Cash Reserves's top holdings include U.S. Treasury Bills & Notes (~55-65%), U.S. Government Agency Repurchase Agreements (~35-45%), Cash & Cash Equivalents (<1%), and others. The fund's sector allocation is U.S. Treasury Debt 58.5%, Government Agency Repos 41.2%, Cash Equivalents 0.3%.
What is the risk profile of Fidelity Government Cash Reserves?
Near-zero NAV volatility seeking constant $1.00 share price. This fund may not be suitable for long-term investors seeking wealth accumulation or inflation-hedging capital appreciation..
What are the tax implications of investing in Fidelity Government Cash Reserves?
Distributions are taxable federally. A portion is state-tax exempt based on direct Treasury holdings.
Data last updated: September 2026 | Fund data sourced from SEC filings and public exchanges
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