3 Top Performing Fidelity Mutual Funds to Consider

Fidelity Investments, with a legacy beginning in 1946 and headquartered in Boston, Massachusetts, stands among the giants in the mutual fund industry, managing assets for over 43 million individual investors. These assets, spread across various markets in North America, Europe, Asia, and Australia, total an astounding $11.5 trillion as of September 30, 2023. A workforce of over 73,000 dedicated professionals carries out intensive research, ensuring Fidelity's clients have access to high potential investment opportunities globally.

Why Choose Fidelity Mutual Funds?

For investors seeking diversified portfolios without having to dabble in the intricacies of fund management, Fidelity's suite of mutual funds offers an ideal solution. The funds cover a variety of asset classes, catering to different risk preferences and providing additional services such as investment advice, discount brokerage, retirement, and wealth management services. Notably, Fidelity's direct-to-client sales model also means their mutual fund products come without any load fees.

2023's Fidelity Funds to Watch

This year, particular Fidelity mutual funds have shown promises of solid performance. Among them are three funds with significant allocations in burgeoning sectors like semiconductors, technology, and well-grounded blue-chip companies. These funds have demonstrated not only a capacity to protect investment capital but also to offer attractive returns. The technology sector's trajectory, spurred by advances in artificial intelligence and machine learning, along with the semiconductor industry's growth due to advanced machinery needs, supports the optimistic outlook for these funds.

Gauging the economic landscape, moderate movements in the Consumer Price Index (CPI) and positive indicators from the central bank suggest an economy rallying with robust GDP growth. Such macroeconomic tailwinds align with the potential for sustained profitability. The funds in focus here have earned a Zacks Mutual Fund Rank #1 (Strong Buy) and have showcased solid year-to-date, three-year, and five-year annualized returns with expense ratios that are competitive within their categories. Furthermore, they offer the inherent benefits of mutual funds, namely reduced transaction costs and the ability to diversify with minimal commission fees typically tied to stock trading.

Spotlight on Select Fidelity Funds

The Fidelity Select Semiconductors Portfolio (FSELX) zeroes in on companies entrenched in semiconductor design, manufacturing, or sales. Under the helm of Adam Benjamin since March 2020, the fund positions itself heavily in industry leaders like NVIDIA, NXP Semiconductors, and ON Semiconductor. Impressively, FSELX's returns as of November 30, 2023, are 64.3% year-to-date, with three-year and five-year annualized gains of 20.9% and 29.8%, respectively. A low expense ratio of 0.68% enhances its appeal.

The Fidelity Select Technology Portfolio (FSPTX) aligns its investments with companies at the forefront of technological innovation, from product development to service enhancements. Since January 2022, Adam Benjamin has directed FSPTX towards major tech players such as Microsoft, Apple, and NVIDIA. The fund's performance reflects year-to-date gains of 51.5%, and three-year and five-year annualized returns of 7.6% and 21.3%, respectively, coupled with an expense ratio of 0.68%.

Fidelity Blue Chip Growth Fund (FBCGX) dedicates its assets to established, renowned, and capital-rich 'blue-chip' companies, a strategy led by Sonu Kalra since May 2017. It boasts significant holdings in NVIDIA, Apple, and Microsoft, and as of November 30, 2023, FBCGX exhibits year-to-date returns of 47.3%, with three- and five-year figures of 6.0% and 18.2%. A modest expense ratio of 0.45% further highlights its attractiveness.

Fidelity, Investments, Funds