The U.S. market remained positive ahead of the holiday season, carrying forward the momentum despite mixed economic signals, earlier in the month. Investors found confidence after the Federal Reserve brought down key interest rates to the range of 3.50-3.75% in three consecutive rate cuts of a quarter basis point each month through December.

The third-quarter Gross Domestic Product (GDP) beat Street expectations and increased at a strong annualized rate of 4.3% against 3.8% in the second quarter, the fastest since the third quarter of 2023. Robust consumer spending and a sharp rebound in exports contributed the most. Consumer spending increased at a 3.5% rate in the third quarter, after advancing at a 2.5% pace in the April-June period.

The Consumer Price Index increased less than expected, at a 2.7% annualized rate last month, giving investors hope that cooling inflationary pressures will give the Fed enough room to deliver further interest rate cuts next year. Consumer confidence deteriorated sharply, falling 3.8 points to 89.1 in December amid deepening anxiety over jobs and income.

Ahead of the critical start to 2026, conflicting economic data present the Fed with a policy dilemma to strike the right balance: whether to address sticky inflation induced by strong GDP growth, or fading consumer confidence indicating a slowdown.

Amid such market conditions, mutual fund investing can help those who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds. Fidelity mutual funds like Fidelity Select Semiconductors Portfolio (FSELX Quick QuoteFSELX - Free Report) , Fidelity Advisor Gold Fund (FIJDX Quick QuoteFIJDX - Free Report)  and Fidelity Series Blue Chip Growth Fund (FSBDX Quick QuoteFSBDX - Free Report) should be good choices since they provide low-cost and uncomplicated equity funds that can help investors meet their goals.

These funds have wide exposure in industries, such as finance, industrial cyclical, utilities, technology and energy. These have not only preserved investors’ wealth but also generated excellent returns.

Why Invest in Fidelity Mutual Funds?

Fidelity mutual funds would be a compelling choice for investors. This is because Fidelity mutual funds have given positive returns in the past and are expected to perform well in the long run.

Headquartered in Boston, MA, Fidelity Investments is one of the oldest and most trusted mutual fund companies in the world. The company was founded in 1946 and had 51.5 million individual investors and $16.4 trillion of assets under administration as of June 30, 2025.

Fidelity Investments has more than 770,00 associates in 11 countries across North America, Europe, Asia and Australia to carry out extensive and in-depth research, and provide potential investment avenues worldwide to their clients.

The company provides best-in-class financial planning, advisory services, retirement planning, wealth management and brokerage services to its clients. Thus, investors who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds can choose Fidelity mutual funds. Fidelity Investments sells its mutual fund products directly to its clients, which results in a zero-load charge.

We have thus selected three Fidelity mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, and minimum initial investments within $5000. The funds carry an expense ratio of less than 1%. 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 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 48% and 31.6%, 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 Advisor Gold Fund invests the majority of its net assets in common stocks of companies engaged in exploration, mining, processing of gold, and also silver, platinum, diamonds, or other precious metals and minerals. FIJDX advisors also invest in gold bullions or coins.

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

FIJDX has three-year and five-year annualized returns of 39.6% and 17.2%, respectively. FIJDX has an annual expense ratio of 0.58%.

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 capitalization. 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 June 31, 2025.

FSBDX’s three-year and five-year annualized returns of 33.4% and 16.3%, respectively. FSBDX has an annual expense ratio of 0.01%.

Want key mutual fund info delivered straight to your inbox?

Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>