PBAMX vs. FIRMX

Last updated Jun 4, 2026

PBAMX (Putnam Retirement Advantage 2040 Fund) and FIRMX (Fidelity Managed Retirement Income Fund) are both Target Retirement Date funds. Over the past 5 years, PBAMX returned 9.87%/yr vs 2.91%/yr for FIRMX. A 0.74 correlation means they provide meaningful diversification when combined. Both charge a 0.45% expense ratio.

Performance

PBAMX vs. FIRMX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Putnam Retirement Advantage 2040 Fund (PBAMX) and Fidelity Managed Retirement Income Fund (FIRMX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PBAMX achieves a 8.54% return, which is significantly higher than FIRMX's 4.04% return.

PBAMX

• 1D: 0.33%
• 1M: 3.88%
• YTD: 8.54%
• 6M: 9.31%
• 1Y: 21.60%
• 3Y*: 18.23%
• 5Y*: 9.87%
• 10Y*: —

FIRMX

• 1D: 0.20%
• 1M: 1.54%
• YTD: 4.04%
• 6M: 4.26%
• 1Y: 10.41%
• 3Y*: 7.59%
• 5Y*: 2.91%
• 10Y*: 4.21%

*Multi-year figures are annualized to reflect compound growth (CAGR)

PBAMX vs. FIRMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
PBAMX Putnam Retirement Advantage 2040 Fund	8.54%	16.68%	13.83%	24.49%	-15.93%	16.47%	13.78%
FIRMX Fidelity Managed Retirement Income Fund	4.04%	9.95%	4.29%	8.07%	-11.66%	2.77%	8.18%

Correlation

The correlation between PBAMX and FIRMX is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (All Time) Calculated using the full available price history since Jan 3, 2020	0.74

The correlation between PBAMX and FIRMX has been stable across timeframes, ranging from 0.73 to 0.81 - a consistent structural relationship.

Return for Risk

PBAMX vs. FIRMX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PBAMX

PBAMX Risk / Return Rank: 74
PBAMX Sharpe Ratio Rank: 73
PBAMX Sortino Ratio Rank: 72
PBAMX Omega Ratio Rank: 68
PBAMX Calmar Ratio Rank: 75
PBAMX Martin Ratio Rank: 82

FIRMX

FIRMX Risk / Return Rank: 72
FIRMX Sharpe Ratio Rank: 76
FIRMX Sortino Ratio Rank: 78
FIRMX Omega Ratio Rank: 77
FIRMX Calmar Ratio Rank: 63
FIRMX Martin Ratio Rank: 66

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PBAMX vs. FIRMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Putnam Retirement Advantage 2040 Fund (PBAMX) and Fidelity Managed Retirement Income Fund (FIRMX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	PBAMX	FIRMX	Difference
Sharpe ratio: Return per unit of total volatility	2.49	2.52	-0.03
Sortino ratio: Return per unit of downside risk	3.52	3.71	-0.19
Omega ratio: Gain probability vs. loss probability	1.46	1.50	-0.04
Calmar ratio: Return relative to maximum drawdown	3.43	3.04	+0.38
Martin ratio: Return relative to average drawdown	15.50	12.98	+2.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PBAMX vs. FIRMX - Sharpe Ratio Comparison

The current PBAMX Sharpe Ratio is 2.49, which is comparable to the FIRMX Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of PBAMX and FIRMX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PBAMX	FIRMX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.49	2.52	-0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.81	0.55	+0.25
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.94	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.78	0.55	+0.23

Drawdowns

PBAMX vs. FIRMX - Drawdown Comparison

The maximum PBAMX drawdown since its inception was -27.57%, smaller than the maximum FIRMX drawdown of -33.73%. Use the drawdown chart below to compare losses from any high point for PBAMX and FIRMX.

Drawdown Indicators

	PBAMX	FIRMX	Difference
Max Drawdown Largest peak-to-trough decline	-27.57%	-33.73%	+6.16%
Max Drawdown (1Y) Largest decline over 1 year	-6.39%	-3.44%	-2.95%
Max Drawdown (3Y) Largest decline over 3 years	-12.67%	-4.96%	-7.71%
Max Drawdown (5Y) Largest decline over 5 years	-21.81%	-16.11%	-5.70%
Max Drawdown (10Y) Largest decline over 10 years	—	-16.11%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-4.94%	-3.71%	-1.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.41%	0.81%	+0.60%

Volatility

PBAMX vs. FIRMX - Volatility Comparison

Putnam Retirement Advantage 2040 Fund (PBAMX) has a higher volatility of 2.57% compared to Fidelity Managed Retirement Income Fund (FIRMX) at 1.65%. This indicates that PBAMX's price experiences larger fluctuations and is considered to be riskier than FIRMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PBAMX	FIRMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.57%	1.65%	+0.92%
Volatility (6M) Calculated over the trailing 6-month period	6.91%	3.42%	+3.49%
Volatility (1Y) Calculated over the trailing 1-year period	8.80%	4.16%	+4.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.27%	5.28%	+6.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.62%	4.51%	+10.11%

PBAMX vs. FIRMX - Expense Ratio Comparison

Both PBAMX and FIRMX have an expense ratio of 0.45%.

Dividends

PBAMX vs. FIRMX - Dividend Comparison

PBAMX's dividend yield for the trailing twelve months is around 10.61%, more than FIRMX's 3.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FIRMX Fidelity Managed Retirement Income Fund	3.09%	3.13%	3.02%	2.81%	4.54%	3.56%	2.48%	2.59%	4.65%	8.57%	1.67%	1.68%
PBAMX Putnam Retirement Advantage 2040 Fund	10.61%	11.51%	7.46%	3.34%	12.96%	14.65%	1.74%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PBAMX and FIRMX in my portfolio?

PBAMX and FIRMX have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PBAMX or FIRMX?

PBAMX has higher volatility (2.57%) compared to FIRMX (1.65%). In terms of maximum drawdown, PBAMX dropped -27.57% vs FIRMX's -33.73%.

Which has better risk-adjusted returns?

FIRMX currently has the higher Sharpe Ratio (2.52 vs 2.49), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.