While we’d all like to think that we’re secretly market geniuses and that no one knows it yet, the reality is that we could benefit from collectively pooled funds and that’s exactly what outperforming mutual funds offer. These (typically) actively managed investment vehicles provide diversification, helping to minimize losses while exposing you to potential upside opportunities.

Sure, you could go it alone but that has a poor track record. Instead, along with the power of diversification, you could benefit from professional management. With outperforming mutual funds, investors gain access to experienced market experts who know how to navigate various storms and undulations based on their research and expertise. More often than not, education and experience win the day.

Finally, mutual funds are convenience and liquid. You can easily buy and redeem these securities. Further, many funds offer automatic investment options for regular contributions. With myriad advantages and generally limited downsides, these outperforming mutual funds offer confidence during a still-confusing time.

Fidelity Fund (FFIDX)

A solid idea among outperforming mutual funds for investors seeking the comfort of blue chips, Fidelity Fund (MUTF:FFIDX) focuses on large-capitalization enterprises. Its top holding is Microsoft (NASDAQ:MSFT), representing 10.53% of total net assets. Coming in close behind is consumer tech giant Apple (NASDAQ:AAPL) at 10.12%. Rounding out the top three is internet juggernaut Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) at 8.81%.

Over the past 52 weeks, FFIDX gained 23%, which is an impressive showing. In contrast, the benchmark S&P 500 gained under 18%. Per U.S. News & World Report, the fund returned 8.2% over the past three years, 12.09% over the past five years and 11.29% in the past decade. However, this long-term return comes at a cost. According to Morningstar, the risk in holding FFIDX rates as “above average.”

Still, when you’re heavily focused on entities like Microsoft and Apple – which continue to climb a wall of worries tied to the consumer economy – you generally can’t go wrong. Sure enough, FFIDX’s fees sit as below average, with its net expense ratio landing at 0.46%. For comparison, the category average is 1.01%.

T. Rowe Price Institutional Mid-Cap Equity Growth Fund (PMEGX)

As the name suggests, T. Rowe Price Institutional Mid-Cap Equity Growth Fund (MUTF:PMEGX) seeks to provide long-term capital appreciation through a diversified portfolio of securities of mid-cap enterprises. Per its prospectus, PMEGX’s top holding is Microchip Technology (NASDAQ:MCHP), which represents 3.13% of total net assets. Coming in second place is Hologic (NASDAQ:HOLX) at 2.68%. Rounding out the top three is Marvell Technology (NASDAQ:MRVL) at 2.52%.

Now, according to U.S. News & World Report, PMEGX printed a return of about 4% over the past year. That’s not particularly impressive given the stratospheric run of the individual technology names in its portfolio. However, over the past five years, the mutual fund gained nearly 7%. And over the past decade, it shot up almost 10%.

As with Fidelity Fund, the T. Rowe Price Institutional Mid-Cap represents an above-average risk. However, its fees are below average. Specifically, its net expense ratio is 0.61% compared to the category average of 1.15%. And its management fee lands at 0.6%, under the category average 0.73%.

Should the Federal Reserve engineer a soft landing, PMEGX could fly once again. Thus, it’s one of the outperforming mutual funds to consider.

Needham Aggressive Growth Fund (NEAGX)

A mutual fund that seeks long-term, tax-efficient capital appreciation, Needham Aggressive Growth Fund (MUTF:NEAGX) seeks at least 65% of its total assets in equity-based securities. And we’re talking about small -capitalization enterprises. Its top holding of a publicly traded company is Super Micro Computer (NASDAQ:SMCI) at 6.59% of total net assets. Coming in a rather distant second is PDF Solutions (NASDAQ:PDFS) at 4.17%.

Unsurprisingly, NEAGX ranks among the top outperforming mutual funds thanks to its hot individual holdings. Per U.S. News & World Report, the fund returned 16% over the past one year period. In the past three and five years, it returned almost 13% and 18%, respectively. Over the past decade, NEAGX returned its shareholders about 12%.

Of course, all this outperformance comes at a cost. Specifically, the risk rates as “high” compared to other funds in the same category, per Morningstar. And the fees are also above average, with a net expense ratio of 1.85% and a management fee of 1.25%. In contrast, the category averages are 1.19% and 0.79%, respectively.

Still, if you want to speculate with the experts, NEAGX gives you the opportunity.

Vanguard Equity-Income Fund (VEIPX)

Moving onto a more conservative platform, the Vanguard Equity-Income Fund (MUTF:VEIPX) focuses on large-value enterprises. Per its prospectus, VEIPX focuses on large-cap companies that could be undervalued relative to their fundamentals. Its top holding is finance giant JPMorgan Chase (NYSE:JPM) at 3.64% of total net assets. Coming in second is hydrocarbon exploration and production firm ConocoPhillips (NYSE:COP) at 2.73%. Rounding out the top three is Merck (NYSE:MRK) at 2.57%.

In full disclosure, the seeking for bargains carries risks. It’s always possible that undervalued enterprises could become even more undervalued. Conspicuously, VEIPX lost 1% of value in the past year. However, on the bright side, it gained nearly 12% in the past three years. Over the past decade, VEIPX returned shareholders approximately 9%. So, the fundamentals do matter at some point.

Adding to the enticing profile, the Vanguard Equity-Income Fund features very low fees. Its net expense ratio sits at 0.28%, well below the category average of 0.96%. Also, its management fee is only 0.27%, below the category average of 0.58%.

If you’re looking for a holistic bargain, VEIPX represents one of the outperforming mutual funds for the long haul.

Fidelity Advisor Semiconductors Fund (FELAX)

Easily one of the top outperforming mutual funds thanks to its namesake specialty, Fidelity Advisor Semiconductors Fund (MUTF:FELAX) focuses on companies engaged in the design, manufacture or sale of semiconductors and related equipment. Perhaps to no one’s surprise, FELAX’s top holding is Nvidia (NASDAQ:NVDA), which represents just over 26% of total net assets. NXP Semiconductors (NASDAQ:NXPI) lands at a very distant second place at 8.15%.

Given the meteoric performance of NVDA along with its decisively optimistic strong buy rating, FELAX has been on the move. Per U.S. News & World Report, the fund returned about 47% over the past year. Its robust mobility is no fluke, either, with the fund returning 26% in the past five years. And over the decade, stakeholders saw their holdings rise by nearly 23%.

As you might imagine, Morningstar assesses Fidelity Advisor Semiconductors as a high-risk fund. However, the good news is that its fees rank as below average. Specifically, its net expense ratio lands at 1%, below the category average of 1.28%. And its management fee is only 0.53%, below the average 0.79%.

Schwab Health Care Fund (SWHFX)

Seeking long-term capital growth, the Schwab Health Care Fund (MUTF:SWHFX) as its name suggests targets equity securities associated with companies in the healthcare ecosystem. Coming in pole position regarding the top holdings is pharmaceutical stalwart Eli Lilly (NYSE:LLY) at 6.57% of total net assets. Coming in right behind is insurance giant UnitedHealth (NYSE:UNH) at 6.06%, followed by Novo Nordisk (OTCMKTS:NONOF) at 4.35%.

Admittedly, in terms of raw performance, SWHFX might not seem an appropriate candidate for outperforming mutual funds. As U.S. News & World Report mentions, the fund slipped into the negative over the past one-year period. However, in the past three years, SWHFX gained over 6% and nearly 7% in the past five years. Over the past decade, it’s up just over 9% and that may be the real narrative.

As Acumen Research and Consulting points out, the global pharmaceutical industry could see a valuation of $2.8 trillion by 2032. So, for patient investors, SWHFX could be a winner. To sweeten the deal, it’s also relatively cheap, with a net expense ratio of 0.8%. In contrast, the category average comes in at 1.23%.

BlackRock Real Estate Securities Fund (BAREX)

Perhaps the most controversial idea on this list of outperforming mutual funds, the BlackRock Real Estate Securities Fund (MUTF:BAREX) seeks both long-term capital growth and dividend income from companies primarily engaged in the real estate industry. Its top holding is American Tower (NYSE:AMT) at 7.96% of total net assets. As well, the company is exposed to apartment-focused real estate investment trusts (REITs).

Given the tough dynamics associated with real estate – especially on the residential side – BAREX might seem a questionable idea. Conspicuously, over the past one-year period, BAREX fell rather steeply into negative territory. That said, over the past three years, it’s up almost 4%. And in the past decade, it gained around 6%.

While these aren’t sterling stats by themselves, the combination of capital gains and dividends should be considered. Further, real estate is essentially permanently relevant because they aren’t making any more new land. Sure enough, the risk profile for BAREX is above average but below high. And its net expense ratio sits at 1%, below the category average of 1.23%.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.