The U.S. stock market continues to grow, supported by gains in tech and discretionary stocks as investors gravitate toward growth-sensitive sectors, which are likely to benefit from a Federal Reserve rate cut. Improving inflation data and signs of a cooling labor market have boosted expectations of an imminent quarter-percentage-point cut in benchmark interest rates at the December Federal Open Market Committee meeting. The Fed has lowered borrowing costs twice so far this year.

The Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, rose 2.8% year on year, following a 2.7% rise in August. Monthly PCE held steady at 0.3%, matching the gains in August. The core PCE index increased 2.8% in the 12 months through September after rising 2.9% for two straight months, reinforcing views that inflation is gradually easing. Personal income and consumer spending rose moderately in September, while factory orders increased 0.2%. Meanwhile, capacity utilization held steady at 75.9%, and industrial production inched up 0.1%.

Moderating wage growth and softer labor market conditions painted a mixed picture. According to a report published by the Labor Department's Bureau of Labor Statistics, job openings, a measure of labor demand, were up 12,000 to 7.67 million as of the last day of October. The job vacancy rate was unchanged at 4.6%. Hiring decreased by 218,000 to 5.149 million. The September unemployment rate rose to a four-year high of 4.4%. Sharp fall in weekly jobless claims by 27,000 to 191,000, the lowest in more than two years, indicates a sharp deterioration in the labor market.

On the international front, oil prices slipped about 1% as geopolitical uncertainty and oversupply concerns weighed on energy markets.

Amid such volatile market conditions, investors looking for higher returns over the long term can consider no-load mutual funds, such as Fidelity Select Semiconductors Portfolio (FSELX Quick QuoteFSELX - Free Report) , Fidelity Select Gold Portfolio (FSAGX Quick QuoteFSAGX - Free Report) , DWS Science and Technology (KTCSX Quick QuoteKTCSX - Free Report) and Fidelity Series Blue Chip Growth Fund (FSBDX Quick QuoteFSBDX - Free Report) , as these have a low expense ratio, which can translate into higher returns. Other factors such as the fund’s 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 investors with front and back loads are 3.78%, whereas they could have enjoyed a much higher return without the 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 of less than 1%. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges primarily associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Fidelity Select Semiconductors Portfolio 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. FSELX chooses to invest in stocks based on fundamental analysis factors such as each issuer's financial condition and industry position, and market and economic conditions.

Adam Benjamin has been the lead manager of FSELX since March 15, 2020. Most of the fund’s exposure was to companies like NVIDIA (24.7%), Broadcom (11.9%) and NXP Semiconductors (6.3%) as of May 31, 2025.

FSELX’s three-year and five-year annualized returns are nearly 59.6% and 37.1%, respectively. FSELX has an annual expense ratio of 0.61%.

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

Fidelity Select Gold Portfolio fund invests most of its net assets in common stocks of companies principally engaged in the exploration, mining and processing of gold and other precious metals. FSAGX also deals in gold bullion or coins.

Boris Shepov has been the lead manager of FSAGX since Dec. 10, 2024. Most of the fund’s exposure was to companies like Agnico Eagle Mines (15%), Franco-Nevada (10.1%) and Franco-Nevada (8.3%) as of Aug. 31, 2025.

FSAGX's three-year and five-year annualized returns are nearly 40.4% and 11.9%, respectively. FSAGX has an annual expense ratio of 0.66%.

DWS Science and Technology fund invests most of its assets, along with borrowings, if any, in common 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 Microsoft (10.7%), NVIDIA (10.5%) and Meta Platforms (9.7%) as of July 31, 2025.

KTCSX’s three-year and five-year annualized returns are 40.1% and 20.6%, respectively. KTCSX has an annual expense ratio of 0.68%.

Fidelity Series Blue Chip Growth Fund invests most of its net assets in common stocks of blue-chip companies, which generally have large or medium market capitalizations. FSBDX advisors consider blue-chip companies as those that are well-known, well-established and well-capitalized.

Sonu Kalra has been the lead manager of FSBDX since Nov. 7, 2013. Most of the fund’s exposure was in companies like NVIDIA (16.7%), Microsoft (10.1%) and Amazon.com (8.6%) as of July 31, 2025.

FSBDX’s three-year and five-year annualized returns are 36.5% and 19.8%, respectively. FSBDX has an annual expense ratio of 0.01%.

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