Mutual funds are investment vehicles that every investor should consider due to their solid rate of returns and overall safety when it comes to preserving capital. Now, with more mutual funds having no minimum investment, their availability to investors has greatly increased.
Mutual funds may not be the most intriguing investment option out there, but they provide investors with peace of mind, knowing their investments are safe and have a very high likelihood of growth. They are the perfect set-it-and-forget-it investment strategy, especially for investors with little to no interest in choosing a number of companies to invest in individually. Managed mutual funds will do all the heavy lifting in that aspect.
Below are several great options for investors considering investments in mutual funds. These funds provide solid returns and don’t require anywhere near the effort or upkeep of an average investment portfolio of hand-picked stocks.
Fidelity Blue Chip Growth Fund (FBGRX)
Fidelity Blue Chip Growth Fund (MUTF:FBGRX) focuses primarily on investments within the information tech sector, which comprises approximately 42% of the total fund. Its inception date was Dec. 31, 1987, and it focused on large-cap growth companies.
The top three holdings of FBGRX include Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Amazon.com (NASDAQ:AMZN).
The fund has an expense ratio of 0.48% and a fairly low turnover rate of 17%. Its net portfolio assets total over $58 billion. Over 95% of the fund comprised equities based in the U.S., with a slight exposure to international markets.
FBGRX is a solid mutual fund for investors seeking exposure to large-cap companies. Its past year’s returns were above average, totaling over 50%. With five-year returns totaling over 20%, it’s a perfect long-term investment option.
Fidelity Contrafund (FCNTX)
Fidelity Contrafund (MUTF:FCNTX) focused on capital appreciation through value and large-cap growth companies. Its inception date was May 17, 1967. The fund’s top sector is tech stocks, which comprise approximately 25% of its assets.
The top three holdings of FCNTX are Meta Planforms (NASDAQ:META), Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) and Microsoft.
The Fidelity Contrafund is an inexpensive fund compared to many other mutual fund options. It also offers a zero-dollar minimum investment. Its expense ratio is low at 0.39%, and its turnover rate is 16%. Portofolio’s net assets are over $132 billion.
Fidelity Contrafund is a great option for many investors due to its diversification, which provides exposure to multiple sectors, including tech, communication services, financials and healthcare. Over the past year, it has returned over 47%, and over a five-year span, its return rate is 17%. It is also an inexpensive investment option due to its very low expense ratio and its average price per mutual fund share.
Fidelity Select Semiconductor Portfolio (FSELX)
Fidelity Select Semiconductor Portfolio (MUTF:FSELX) is a fund that focuses heavily on the information technology sector, specifically semiconductors, which have been booming for the last several years. The fund’s inception date was July 29, 1985.
The top three holdings of FSELX are Nvidia, NXP Semiconductors (NASDAQ:NXPI) and ON Semiconductor (NASDAQ:ON).
FSELX has portfolio net assets of approximately $16 billion. Its total portfolio is weighted heavily towards U.S.-based companies with slight exposure to Asia, Europe, and emerging markets. The expense ratio is 0.64%, and the turnover rate is 50%, making it the most expensive option to hold of the three mutual funds mentioned. And with a high turnover rate makes the fund inherently a riskier option.
Being a fund focused on growth within the semiconductor industry, it has experienced outstanding returns. In the last year, it returned over 63%, and over the last five years, it has returned over 35%, which makes it one of the best-performing mutual funds.
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.
