The U.S. economy remains resilient, despite complex domestic and geopolitical conditions. The investor outlook was primarily driven by a cooling labor demand, stable inflation and significant political tension between the White House and the Federal Reserve. However, record-breaking earnings from big tech and resilience in the banking sector are helping to keep major stock indexes at near-historic peaks.

The Consumer Price Index (CPI) increased 0.3% for the month of December and 2.7% annually. Core CPI (excluding food and energy) came in at 2.6%, the lowest level since March 2021. The Institute for Supply Management stated that the manufacturing Purchasing Managers' Index (PMI) slipped to 47.9 in December 2025, the weakest reading since October 2024. However, Services PMI had surprisingly reached 54.4 in December, up from 52.6 in the previous month. A reading below 50 indicates contraction, and above 50 means expansion. Retail sales increased 0.6% in November after a downwardly revised 0.1% drop in October, suggesting that American consumers are still spending.

The latest Job Openings and Labor Turnover Survey (JOLTS) data reflects a labor market that is cooling yet stable. December’s Nonfarm Payrolls grew by 50,000, missing Wall Street estimates even as the unemployment rate ticked down slightly to 4.4%. Meanwhile, wage growth accelerated, with average hourly earnings rising 3.8% year over year from November’s 3.6%.

Amid such 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) , Fidelity Series Blue Chip Growth Fund (FSBDX Quick QuoteFSBDX - Free Report) and JPMorgan U.S. GARP Equity Fund (JGIRX Quick QuoteJGIRX - 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 are also acting 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 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 five 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 (25%), Broadcom (14.7%) and NXP Semiconductors (7.2%) as of Aug. 31, 2025.

FSELX’s three-year and five-year annualized returns are nearly 55.1% and 30.9%, 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 Newmont (8.3%) as of Aug. 31, 2025.

FSAGX's three-year and five-year annualized returns are nearly 40.6% and 16.6%, 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 39.3% and 16.1%, 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 38.3% and 15.3%, respectively. FSBDX has an annual expense ratio of 0.01%.

JPMorgan U.S. GARP Equity Fund invests most of its assets, along with borrowing, if any, in a portfolio of equity securities of large and mid-cap domestic companies. JGIRX advisors invest in companies that its advisors believe have attractive valuations, high quality and strong momentum that should lead to relative outperformance.

Lei (Grace) Liu has been the lead manager of JGIRX since Nov. 1, 2023. Most of the fund’s exposure was in companies like NVIDIA (13.4%), Microsoft (11.7%) and Apple (9.4%) as of Sept. 30, 2025.

JGIRX’s three-year and five-year annualized returns are 31.6% and 16.8%, respectively. JGIRX has an annual expense ratio of 0.44%.

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