Mutual funds are a great alternative option for investors, who want to gain all the rewards from investing, especially in a bullish market, but don’t want to constantly manage their portfolio. Mutual funds are a very strong and reliable form of investing that has been available for nearly a century and has consistently offered investors a decent return on their investments.
Investing in mutual funds is a fantastic way to prepare financially for events like retirement. It will provide a substantial nest egg over an extended period of time.
Investors who are also somewhat risk-averse may gravitate to mutual funds. They offer decent returns with little effort on the part of an individual investor.
Below are a few options for mutual funds that have performed very well, especially over the past year, and offer investors great growth potential in the near and long term.
Fidelity Focused Stock Fund (FTQGX)
Fidelity Focused Stock Fund‘s (MUTF:FTQGX) inception date is Nov. 11, 1996, and the fund’s objective is to seek capital growth. Technology companies make up a majority of the fund at 28% of its total holdings.
The top three companies within FTQGX are Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and Meta Platforms (NASDAQ:META)
The expense ratio is approximately 0.47%, and the top ten holdings comprise more than 50% of the total. Its turnover rate is 130%, which puts it in the category of a higher-risk fund due to the fact that securities are bought and sold fairly frequently. Over 96% of its portfolio is made up of U.S.-based companies.
As of Jan. 31, 2024, The Fun has holdings in 38 different companies, which are a mix of growth and value stocks. Over the last year, FTQGX has seen incredible returns of 48%, and over five years, it has grown by 17%.
FTQGX is a great fund with excellent returns, especially in the last year. It is a great buy for investors looking for a higher-risk option focused on growth that doesn’t require a minimum investment to get started.
Fidelity Select Semiconductors Portfolio (FSELX)
Fidelity Select Semiconductor Portfolio (MUTF:FSELX) has been one of the top-performing mutual funds over the last year, with returns of 69%. Over the last five years, the fund has grown by 34%.
The fund’s inception date was July 29, 1985, and it’s a mutual fund geared to semiconductor companies. 85% of the portfolio comprises semiconductor companies, and the top three holdings are Nvidia ( which over 27% of the fund is allocated towards), NXP Semiconductors (NASDAQ:NXP), and Marvell Technologies (NASDAQ:MRVL).
The fund’s objective is to seek capital appreciation. It has an expense ratio of 0.64% and a turnover rate of 50%, meaning that securities are not traded near the frequency of other funds like FTQGX, which I mentioned above. However, it is important to note that FSELX does rely fairly heavily on Nvidia’s performance.
FSELX has seen impressive returns over this past year and is an amazing option for investors seeking greater exposure to the semiconductor market and all the innovations occurring within the industry.
Fidelity Select Communication Services Portfolio (FBMPX)
Fidelity Select Communications Services Portfolio (MUTF:FBMPX) initiated on June 30, 1986. Its 0.7% expense ratio makes it the most expensive fund to manage of the three picks, but its 42% turnover rate makes it fairly stable. There is no minimum investment required.
The fund’s top three holdings include Meta Platforms, Alphabet (NASDAQ:GOOGL), and Disney (NYSE:DIS).
Over the past year, FBMPX has seen returns increase by 52% and over five years, the fund has grown by 14%. 50% of FBMPX is comprised of communication services stocks, and 96% are U.S.-based companies.
The fund aims to provide capital growth and is geared toward investors seeking exposure to the communications industry. It is important to keep in mind that 25% of the fund is invested in meta platforms. FBMPX has experienced substantial returns and is a perfect option for any investor seeking a lower-risk option for investing in interactive media stocks.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
