Major U.S. indexes have lost their shine in 2025—the Nasdaq Composite, the S&P 500, and the Dow Jones Industrial Average—were down by 8.9%, 3.6%, and 0.8%, respectively, over the year-to-date period. Investors are concerned over Trump’s reciprocal tariff policy with major trading partners, the higher inflation rate, and the fear of a near-term recession.

In February, the personal consumption expenditure (PCE) index, the Fed’s preferred inflation gauge, rose 2.5% on a year-over-year basis, in line with January data. However, the core PCE inflation (excluding volatile items like food and energy) rose 0.4% in February, marking the biggest monthly gain since January 2024. Analysts expect short-term (one-year) inflation to spike to 5% in March from 4.3% in February. Personal income increased 0.8% in February from 0.7% last month. The personal savings rate came in at 4.6% compared to 4.3% in January. Whereas personal spending — the largest component of the U.S. GDP — rose 0.4% in February, lower than the consensus estimate of 0.5%.

The Job Openings and Labor Turnover Survey (JOLTS) reported by the Bureau of Labor Statistics for the month of February marked the lowest level since September 2024. Rising uncertainty due to tariffs on imports restrained demand for labor. Job openings dropped 194,000 to 7.568 million in February. The Institute of Supply Management (ISM) reported that manufacturing PMI (purchasing managers’ index) for March contracted to 49% from 50.3% in February. Any reading below 50% indicates a contraction in manufacturing activities.

Amid the current market conditions, investors looking for higher returns can consider no-load mutual funds like Invesco SteelPath MLP Alpha (MLPOX Quick QuoteMLPOX - Free Report) , Fidelity Advisor Semiconductors (FIKGX Quick QuoteFIKGX - Free Report) , Fidelity Select Insurance Portfolio (FSPCX Quick QuoteFSPCX - Free Report) and DWS Science and Technology (KTCSX Quick QuoteKTCSX - Free Report) as these have a low expense ratio, which can translate into higher returns. Other factors such as the funds’ performance history, investment style and risk tolerance also act in their favor.

Why Choose No-Load Mutual Funds Now?

Investors with disposable income who wish to diversify their portfolios can opt for no-load mutual funds. These passively managed funds don’t have any commission fees, or any other charges for buying and selling that are generally associated with actively managed funds.

The sales charges — referred to as a “front-end load,” which is charged upon purchasing shares, or “back-end load,” which is charged upon the selling of shares — are absent in such funds because shares are distributed directly by the investment company, instead of any third-party involvement like a broker, advisor or other professionals.

Even a few additional basis points saved in fees can boost the overall return by minimizing expenses. However, charges like the fund’s expense ratio, 12b-1 fees for marketing, distribution, and service, redemption fees, exchange fees, and account fees are commonly charged even if there is no load.

A Hypothetical Example

The load charges are generally within the range of 0-6%. To understand the math, let’s assume an investor wants to invest $1000 in a mutual fund that has a 5% entry and exit load. Then, $950 ($1000-$50 [5% of $1000]) is left with the mutual fund house to invest. Now, let’s assume the fund has given a 15% return over the year. So, the current value of the portfolio is $1092.5 ($950+ $142.5 [15% of $950]). Now, when an exit load of 5% is applied, the investor is left with $1037.87 ($1092.5-$54.63 [5% of $1092.5]).

According to the above hypothesis, the returns earned by the investor with front and back load is 3.78%, whereas he could have enjoyed a much higher return without load.

We have thus selected four no-load mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio. 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).

Invesco SteelPath MLP Alpha fund invests most of its assets along with borrowings, if any, in the master limited partnership of companies, which are engaged in the transportation, storage, processing, refining, marketing, exploration, production, and mining of minerals and natural resources. MLPOX advisors also invest in derivatives and other instruments with similar economic characteristics in the same industry.

Stuart Cartner has been the lead manager of MLPOX since April 1, 2010. Most of the fund’s exposure was in companies such as Energy Transfer (14.1%), MPLX (13.5%) and Targa Resources(11.4%) as of Nov. 30, 2024.

MLPOX’s three-year and five-year annualized returns are 26.4% and 22.9%, respectively. MLPOX has an annual expense ratio of 1.53%.

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

Fidelity Advisor Semiconductors fund invests most of its net assets in common stocks of domestic and foreign companies that areprincipally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FIKGX advisors choose to invest in stocks based on fundamental analysis factors such as financial condition and industry position, along with market and economic conditions.

Adam Benjamin has been the lead manager of FIKGX since March 16, 2020. Most of the fund’s holdings were in companies like NVIDIA (24.5%), Broadcom (11.3%) and Taiwan Semiconductors (7.3%) as of Oct. 31, 2024.

FIKGX’s three-year and five-year annualized returns were 22.3% and 31%, respectively. FIKGX has an annual expense ratio of 0.59%.

Fidelity Select Insurance Portfolio fund invests most of its net assets in common stocks of domestic and foreign companies that areengaged in underwriting, reinsuring, selling, distributing, or placing property and casualty, life, or health insurance. FSPCX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.

Fahim Razzaque has been the lead manager of FSPCX since July 13, 2022. Most of the fund’s exposure was in companies like Chubb (10.8%), AON (8.1%) and Arthur J. Gallagher (8.1%) as of Nov. 30, 2024.

FSPCX’s three-year and five-year annualized returns of 18.4% and 19.1%, respectively. FSPCX has an annual expense ratio of 0.70%.

DWS Science and Technology fund invests most of its assets along with borrowings, if any, incommon stocks and initial public offerings of domestic science and technology companies, irrespective of their market capitalization. KTCSX advisors may also invest in foreign companies from the technology sector or other industries within the technology sector from developed and emerging market economies.

Sebastian P. Werner has been the lead manager of KTCSX since Dec 1, 2017. Most of the fund’s exposure was in companies like NVIDIA (10%), Apple (8.6%), and Meta Platforms (8.5%) as of Oct 31, 2024.

KTCSX’s three-year and five-year annualized returns are 17.4% and 20.5%, respectively. KTCSX has an annual expense ratio of 0.68%.

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