Headquartered in Boston, MA, Fidelity Investments is one of the largest and oldest mutual fund companies in the world since its inception in 1946. The company currentlyhas more than 43 million individual investors. It employs more than 73,000 associates in nine countries across North America, Europe, Asia and Australia to carry out extensive and in-depth research to provide potential investment avenues worldwide for their clients. As of Sep 30, 2023, Fidelity Investments held $11.5 trillion in assets under administration.

Fidelity mutual funds should be a good investment choice for investors who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds. The company offers a large family of mutual funds with an expert fund management team in various asset classesto choose from based on individual risk appetite. Fidelity mutual funds also provide investment advice, discount brokerage services, retirement services and wealth management services, among others, to its clients. The company sells its mutual fund products directly to its clients, which results in a zero-load charge.

Fidelity mutual funds are a compelling investment choice since they have given a positive return and are expected to perform well in the long run. We have thus selected three fidelity mutual funds that have wide exposure in industries like semiconductors, technology and blue-chip companies, which have not only preserved investors’ wealth but also generated excellent returns.

The technology sector will continue to evolve due to the adoption of artificial intelligence and machine learning, which are expected to change the face of many industries in the coming years, there by increasing profitability. The semiconductor industry is also expected to perform well due to the adoption of more sophisticated machinery in various sectors.

The Consumer Price Index (CPI) for the month of November was 3.1% from a year ago. From the previous month, CPI rose modestly by 0.1% in November due to an increase in the rental cost. As inflation began to stabilize, the central bank indicated that it would ease its monetary policy outlook in 2024. Such moves will boost investors’ confidence and will certainly impact corporate profitability in a positive way. Moreover, GDP growth of 5.2% in Q3 indicates that the U.S. economy is still resilient.

These funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive YTD, three-year and five-year annualized returns, and minimum initial investments within $5000, and carry a low expense ratio compared to the category average. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Fidelity Select Semiconductors Portfolio (FSELX Quick QuoteFSELX - Free Report) fund invests most of its net assets in common stocks of domestic and foreign companies that are principally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FSELX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.

Adam Benjamin has been the lead manager of FSELX since Mar 15, 2020. Most of the fund’s exposure is in companies like NVIDIA (24.8%), NXP Semiconductors (8.4%) and ON Semiconductor (8.0%) as of Aug 31, 2023.

As of Nov 30, 2023, FSELX’s has year-to-date, three-year and five-year annualized returns of almost 64.3%, 20.9% and 29.8%, respectively. FSELX has an annual expense ratio of 0.68%, which is less than the category average of 1.05%.

To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.

Fidelity Select Technology Portfolio (FSPTX Quick QuoteFSPTX - Free Report) fund invests primarily in common stocks of domestic and foreign companies that offer, use, or develop products, processes, or services that will benefit significantly from technology advancements. FSPTX uses fundamental analysis techniques like financial condition, industry position, as well as, market and economic conditions to select investments.

Adam Benjamin has been the lead manager of FSPTX since Jan 17, 2022. Most of the fund’s exposure is in companies like Microsoft (17.3%), Apple (17.0%) and NVIDIA (13.4%) as of Aug 31, 2023.

As of Nov 30, 2023, FSPTX’s has year-to-date, three-year and five-year annualized returns of almost 51.5%, 7.6%, and 21.3%, respectively. FSPTX has an annual expense ratio of 0.68%, which is less than the category average of 1.05%.

Fidelity Blue Chip Growth Fund (FBCGX Quick QuoteFBCGX - Free Report) invests most of its net assets in common stocks of blue-chip companies, which, according to the Fidelity Management & Research Company, are well-known, well-established and well-capitalized. FBCGX advisors prefer to invest in large or medium-market capitalization companies.

Sonu Kalra has been the lead manager of FBCGX since May 24, 2017. Most of the fund’s exposure is in companies like NVIDIA (9.4%), Apple (8.7%) and Microsoft (6.7%) as of Jul 31, 2023.

As of Nov 30, 2023, FBCGX had year-to-date, three-year and five-year annualized returns of almost 47.3%,6.0% and 18.2%, respectively. FBCGX has an annual expense ratio of 0.45% compared to the category average of 0.99%.

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