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Best Mutual Funds to Buy Now: 3 Picks for the Rest of 2026
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The uncertainty with respect to the Federal Reserve’s interest-rate policy is still present. However, equities have strengthened due to low inflation, solid earnings by companies and a stable economy supported by resilient labor markets and steady consumer spending. At the same time, the continued large investment in AI is driving strong demand for semiconductor companies. Advances in drug development and healthcare are fostering a very good environment for biotechnology stocks. Moreover, improved economic conditions and attractive valuations have made this a great period for the emerging markets. Together, these factors are shaping the market outlook for the remainder of 2026.
We have picked three mutual funds — Fidelity Advisor Semiconductors Fund (FIKGX - Free Report) , ClearBridge SMASh Series EM Fund (LCSMX - Free Report) and Fidelity Advisor Biotechnology Fund (FBTIX - Free Report) — which investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.
Fidelity Advisor Semiconductors 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. FIKGX chooses to invest in stocks based on fundamental analysis factors such as each issuer's financial condition, industry position, and market and economic conditions.
Sonu Kalra has been the lead manager of FIKGX since July 15, 2026. Most of the fund's holdings were in companies like NVIDIA Corp (24.8%), Broadcom Inc. (10.6%) and Marvell Technology, Inc. (7.7%) as of Jan. 31, 2026.
FIKGX has gained 50.4% on a year-to-date (YTD) basis. The fund has also returned 135.4% over the past year.
FIKGX 's 3-year and 5-year annualized returns are 59.6% and 41.1%, respectively. FIKGX net expense ratio is 0.55%. FIKGX carries a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
ClearBridge SMASh Series EM Fund invests a majority of its net assets plus any borrowings in securities of issuers with substantial economic ties to one or more emerging market countries or similar investments. LCSMX primarily holds equity and equity-related securities, including common and preferred stocks, convertibles, depositary receipts, REITs, other investment companies (including ETFs), and synthetic foreign equity securities, and may use index futures to obtain market exposure, attempt to enhance returns, and to manage cash.
Keith E. White has been the lead manager of LCSMX since Jan. 10, 2018. Most of the fund's holdings were in companies like SK hynix Inc. (13.5%), Taiwan Semiconductor Manufacturing Co Ltd (8.3%) and Samsung Electronics Co., Ltd. (7%) as of Jan. 31, 2026.
LCSMX has gained 32.4% on a YTD basis. The fund has also returned 111.3% over the past year.
LCSMX's 3-year and 5-year annualized returns are 30.2% and 11.3%, respectively. LCSMX's net expense ratio is 0.07%. LCSMX carries a Zacks Mutual Fund Rank #1.
Fidelity Advisor Biotechnology Fund invests most of its assets in securities of companies principally engaged in the research, development, manufacture, and distribution of biotechnological products, services, and processes, and in companies that benefit significantly from scientific and technological advances in biotechnology.
Eirene Kontopoulos has been the lead manager of FBTIX since July 15, 2018. Most of the fund's holdings were in companies like AbbVie Inc. (16.1%), Gilead Sciences, Inc. (6.6%) and Alnylam Pharmaceuticals, Inc. (5%) as of Jan. 31, 2026.
FBTIX has gained 23% on a YTD basis. The fund has also returned 77.1% over the past year.
FBTIX's 3-year and 5-year annualized returns are 26.2% and 12.6%, respectively. FBTIX’s net expense ratio is 0.70%. FBTIX carries a Zacks Mutual Fund Rank #1.
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Best Mutual Funds to Buy Now: 3 Picks for the Rest of 2026
The uncertainty with respect to the Federal Reserve’s interest-rate policy is still present. However, equities have strengthened due to low inflation, solid earnings by companies and a stable economy supported by resilient labor markets and steady consumer spending. At the same time, the continued large investment in AI is driving strong demand for semiconductor companies. Advances in drug development and healthcare are fostering a very good environment for biotechnology stocks. Moreover, improved economic conditions and attractive valuations have made this a great period for the emerging markets. Together, these factors are shaping the market outlook for the remainder of 2026.
We have picked three mutual funds — Fidelity Advisor Semiconductors Fund (FIKGX - Free Report) , ClearBridge SMASh Series EM Fund (LCSMX - Free Report) and Fidelity Advisor Biotechnology Fund (FBTIX - Free Report) — which investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.
Fidelity Advisor Semiconductors 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. FIKGX chooses to invest in stocks based on fundamental analysis factors such as each issuer's financial condition, industry position, and market and economic conditions.
Sonu Kalra has been the lead manager of FIKGX since July 15, 2026. Most of the fund's holdings were in companies like NVIDIA Corp (24.8%), Broadcom Inc. (10.6%) and Marvell Technology, Inc. (7.7%) as of Jan. 31, 2026.
FIKGX has gained 50.4% on a year-to-date (YTD) basis. The fund has also returned 135.4% over the past year.
FIKGX 's 3-year and 5-year annualized returns are 59.6% and 41.1%, respectively. FIKGX net expense ratio is 0.55%. FIKGX carries a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
ClearBridge SMASh Series EM Fund invests a majority of its net assets plus any borrowings in securities of issuers with substantial economic ties to one or more emerging market countries or similar investments. LCSMX primarily holds equity and equity-related securities, including common and preferred stocks, convertibles, depositary receipts, REITs, other investment companies (including ETFs), and synthetic foreign equity securities, and may use index futures to obtain market exposure, attempt to enhance returns, and to manage cash.
Keith E. White has been the lead manager of LCSMX since Jan. 10, 2018. Most of the fund's holdings were in companies like SK hynix Inc. (13.5%), Taiwan Semiconductor Manufacturing Co Ltd (8.3%) and Samsung Electronics Co., Ltd. (7%) as of Jan. 31, 2026.
LCSMX has gained 32.4% on a YTD basis. The fund has also returned 111.3% over the past year.
LCSMX's 3-year and 5-year annualized returns are 30.2% and 11.3%, respectively. LCSMX's net expense ratio is 0.07%. LCSMX carries a Zacks Mutual Fund Rank #1.
Fidelity Advisor Biotechnology Fund invests most of its assets in securities of companies principally engaged in the research, development, manufacture, and distribution of biotechnological products, services, and processes, and in companies that benefit significantly from scientific and technological advances in biotechnology.
Eirene Kontopoulos has been the lead manager of FBTIX since July 15, 2018. Most of the fund's holdings were in companies like AbbVie Inc. (16.1%), Gilead Sciences, Inc. (6.6%) and Alnylam Pharmaceuticals, Inc. (5%) as of Jan. 31, 2026.
FBTIX has gained 23% on a YTD basis. The fund has also returned 77.1% over the past year.
FBTIX's 3-year and 5-year annualized returns are 26.2% and 12.6%, respectively. FBTIX’s net expense ratio is 0.70%. FBTIX carries a Zacks Mutual Fund Rank #1.
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 >>