Hands off or hands on, the Hewlett Packard Enterprise 401(k) Plan (the “HPE 401(k)”) gives you the flexibility to approach investing the way you like. The investment fund lineup is divided into five categories, or “tiers,” giving you a choice of ready-to-go portfolios, the basic building blocks to create your own portfolio, or the freedom to choose from thousands of mutual funds.
Which tier is right for me?
The tier that’s right for you depends on your investing interest, experience, and knowledge—and how much time you have to devote to your portfolio.
Here's a look at each of the tiers:
- Tier 1: Complete Portfolios
If you’re new to investing or don’t want to spend a lot of time managing your investments, you may want to consider the Birth Date Funds in Tier 1. The ready-mixed portfolios in the Birth Date Funds automatically get more conservative over time so you don’t have to rebalance the portfolio yourself. Each Birth Date Fund is designed for investors in a similar age group. For example, if you were born around 1970, you might choose the Birth Date Fund: 1970 Fund.
This tier also includes the Conservative Fund, which may be appropriate for investors closer to retirement with a low-risk tolerance. It’s designed to be a Complete Portfolio, though its investments don’t change over time like those in the Birth Date Funds.
- Tier 2: Core Active Funds
If you want to create your own portfolio, Tier 2 provides the basic building blocks. This tier offers “actively managed” funds from the major asset classes (equities, bonds, and short-term investments) that seek to outperform benchmarks. An actively managed fund is supervised by a manager or management team, who relies on analytical research, forecasts, and their own judgment and experience to decide which securities to buy, hold, and sell.
- Tier 3: Core Passive Funds
If you want to create your own portfolio—or round out Tier 2 investments—Tier 3 offers passively managed funds, also known as index funds. Index funds track to a segment of the overall market, such as large cap or international stocks, and seek to match the performance of corresponding benchmarks.
- Tier 4: Extended Funds
If you’re looking to diversify beyond the core asset classes in Tiers 2 and 3, Tier 4 offers the Hewlett Packard Enterprise Stock Fund as a single stock investment option. Because having too much of your portfolio in a single stock can increase your risk exposure, this option should only be used to complement your investments in Tiers 2, 3, and 5.
- Tier 5: Brokerage Window
If you’re looking for expanded choices outside the fund lineup, you may be interested in Tier 5. This tier allows you to go outside the HPE 401(k) fund lineup and invest in thousands of brand-name mutual funds offered through Fidelity’s self-directed brokerage window. Tier 5 is designed for investors who understand how to evaluate the costs (expense ratios) and performance of these investments against benchmarks, as well as the trading costs associated with investing through a brokerage account. Keep in mind these funds are not monitored by HPE.
Although you can invest in options from any or all tiers, you may want to focus your investments in Tier 1, or in Tiers 2 and 3, before expanding to Tiers 4 and 5. Also keep in mind that the custom funds in Tiers 1-4 generally have lower fees than the mutual funds in Tier 5. Over time, higher expenses can have a dramatic impact, reducing your returns.
Where can I learn more?
There’s plenty of additional information available to help you learn about the HPE 401(k) fund lineup. For details on the investment options available in each tier, check out Fidelity NetBenefits® to compare investments, view quotes for each investment, and view market indices for real-time quotes and daily changes.
Note: Principal invested in Birth Date Funds is not guaranteed at any time, even after an investor retires.
The information contained in this article was provided by Hewlett Packard Enterprise, which is responsible for its content.
© 2026 FMR LLC. All rights reserved.
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Find your investing style
The HPE 401(k) offers investment options for every experience level, from simple portfolios to expanded fund choices. Pick the best option for you and your goals.
