The ‘Fade’ effect is extremely processor-intensive in Inventor, especially if used in a rendered animation.
Earlier last year I’ve tested this effect in Inventor 2017, soon after it was released – see my post here:
http://forums.autodesk.com/t5/inventor-forum/friday-pictures-5-13-16/m-p/6324704#M594986
This example has 8 parts fading to 0 visibility.
I’ve noticed that Fade effect works correctly, but only when used in ‘Preview: No Render’ mode. In this mode, as there is no reflective interaction between the parts, we could create a decent animation, at a reasonably good quality.
However, when trying to Render, the air gaps between the fully faded parts will appear black (or remain visible in some other colours), and some other unwanted artefacts may appear – such as shadows/reflections of faded parts. This 'shortfall' has not been fixed yet, and, like @mcgyvr said earlier, I don’t expect it to be fixed anytime soon. It could be way too complex to resolve all decals, shadows, reflections, bumps, and other lighting effects that interact and are affected by Fade.
So, if Fade is essential to your animation, I would recommend staying with ‘Preview: No Render setting’.
Alternatively, the fade effect can be created in post-processing, using a good third-party video editor that can support video compositing, separate layers, masks, etc.