Despite the recent excitement in the stock and cryptocurrency markets following the recent Bitcoin (BTC-USD) halving event, the idea of investing in the top mutual funds might not seem as attractive. However, unexciting investments can still be effective. In fact, a handful of mutual funds have outperformed the S&P 500 index, a key benchmark, this year.

The primary benefit of investing in top-performing mutual funds is active management. By investing in these funds, you become part of a professional team working together to achieve the fund’s goals. While you might be tempted to invest on your own during strong bull markets, bear markets separate the strong investors from the weak.

Top-performing mutual funds have an advantage due to their risk management strategies. Fund managers have access to the best information and resources, allowing them to make more profitable adjustments to the fund’s holdings. 

So with that being said, here are three of the top mutual funds for investors to consider in April.

Fidelity Blue Chip Growth Fund (FBGRX)

The Fidelity Blue Chip Growth Fund (MUTF:FBGRX) primarily invests in large-cap growth companies within the information technology sector. It’s known for a solid performance history and a focus on prominent tech companies.

This mutual fund manages $60.61 billion in assets and has a moderate expense ratio of 0.69%. It offers no minimum investment requirement, a semi-annual dividend payout yielding 0.85%, and exhibits strong performance with a 9.30% year-to-date return and significant long-term gains, including a 43.91% one-year return.

The fund’s top holdings are concentrated in major technology firms, with Nvidia (NASDAQ:NVDA) leading at 12.94% of the portfolio, followed by Microsoft (NASDAQ:MSFT) at 9.28%, Amazon (NASDAQ:AMZN) at 8.77%, and Apple (NASDAQ:AAPL) at 7.44%.

This fund would then be suitable for a younger investor who has long time horizon due to the high-risk nature of the holdings involved.

Fidelity Contrafund (FCNTX)

Fidelity Contrafund (MUTF:FCNTX) invests in value and large-cap growth stocks across diverse sectors, including technology and healthcare.

This mutual fund, with an inception date of May 17, 1967, manages substantial assets totaling $135.90 billion and maintains a low expense ratio of 0.39%. It does not require a minimum investment and offers a dividend yield of 2.80%, despite a significant decrease in dividend growth. The fund has shown robust performance with a year-to-date return of 13.70%.

It holds 364 assets, focusing significantly on major companies such as Meta Platforms (NASDAQ:META), Berkshire Hathaway (NYSE:BRK.B, NYSE:BRK.A), and Microsoft.

This pick could be a good option for those who have a bullish thesis on tech, but also want exposure to the healthcare sector. This helps to balance out some of the downside risk associated with the cyclical swings the tech sector goes thru via its exposure to a more defensive sector being healthcare.

Fidelity Select Semiconductor Portfolio (FSELX)

Fidelity Select Semiconductor Portfolio (MUTF:FSELX) focuses on the semiconductor sector, which has been experiencing growth.

I don’t believe that FSELX should form the bedrock of one’s portfolio due to the high volatility of the semiconductor industry. However, I see semiconductors as being able to increase the risk and volatility of one’s portfolio, which could lead to outsized returns over long periods, even compared to benchmarks such as the Nasdaq. This is seen thru the lens of historical performance.

FSELX manages $17.07 billion in assets and has a relatively high turnover rate of 35%. It offers a notable dividend yield of 6.35% with significant dividend growth of 78.63%. The fund’s recent performance includes a 13.44% return year-to-date, a 55.77% return over one year, and an impressive 260.98% return over five years.

The dividends of FSELX are highly variable, and this should not be considered a safe option for income investors. In December 2022, it paid a $0.282 dividend, compared to the dividend of $1.702 in December last year.

Schwab S&P 500 Index Fund (SWPPX)

Schwab S&P 500 Index Fund (MUTF:SWPPX) offers broad exposure to large-cap U.S. stocks with a very low expense ratio.

This mutual fund, started on May 20, 1997, controls assets worth $91.41 billion and is characterized by a very low expense ratio of 0.02% and minimal turnover of 2%. It provides an annual dividend with a yield of 1.36% and has seen a dividend growth of 6.72%. Performance metrics are solid, with a 5.49% return year-to-date, a 22.98% one-year return, and an 87.05% five-year return. 

As it tries to track the total return of the S&P 500 index, it tracks some of the biggest names in tech such as MSFT, AAPL, and NVDA.

What’s interesting about SWPPX is that its expense ratio of 0.02 is lower than the Vanguard S&P 500 ETF (NYSEARCA:VOO). Also, while both ETFs attempt to track the underlying index, there’s some slight changes in the allocation toward individual stocks and sectors, with SWPPX being slightly more spread out across different stocks than VOO.

Fidelity 500 Index Fund (FXAIX)

Fidelity 500 Index Fund (MUTF:FXAIX) tracks the S&P 500 and is designed for investors seeking a low-cost method to gain exposure to large U.S. companies.

FXAIX is a massive fund with $534.04 billion in assets, a low expense ratio of 0.015%, and a quarterly dividend yield of 1.39%. It has shown robust performance with a 5-year return of 87.20%.

FXAIX has outperformed some important indices over considerable time periods, including VOO. The difference can largely be chalked up to the minor differences in expense ratios, as both are tracking the same underlying index.

There is also a slight difference in FXAIX’s dividend yield, as for some years, FXAIX’s dividend yield has been up half a percentage or more despite being almost perfectly correlated on a capital-return basis.

Due to its lower expense ratio and very slightly higher dividend for some observed years, I deduce FXAIX being a better option than VOO.

Fidelity Zero Large Cap Index (FNILX)

Known for its zero expense ratio, Fidelity Zero Large Cap Index (MUTF:FNILX) provides exposure to large-cap U.S. stocks without any direct cost to investors.

This mutual fund, launched on September 13, 2018, has assets totaling $9.04 billion.  With a minimal turnover rate of 2%, it offers an annual dividend with a yield of 1.27% and has experienced a dividend growth of 10.24%. The fund has shown consistent performance with a year-to-date return of 5.46%, a one-year return of 23.87%, and a five-year return of 87.67%. It holds 519 assets

FNILX invests mainly in big tech, as its index ranks companies on their float-adjusted market capitalization and invests in them accordingly.

A tiny expense ratio of 0.02% may seem small or even a trivial consideration, but due to the effects of compounding returns and comparative opportunity costs, this can grow to a very large sum over periods of twenty to thirty years. Investors should consider not only how much they are paying in expense fees, but what their total investment would be worth if they instead invested that amount they spend on expense fees into an ETF like FNILX instead. My own research shows the amount can often be in the tens of thousands of dollars for an average portfolio, but can reach as high as six figures.

Of course, the bigger your account is, the more you’ll pay in fees and comparative costs. So this could equally be valuable for high net worth and long time holders.

T. Rowe Price Equity Index 500 Fund (PREIX)

T. Rowe Price Equity Index 500 Fund (MUTF:PREIX) tracks the S&P 500 and competes by offering a competitive expense ratio.

This mutual fund, established on March 30, 1999, manages $31.16 billion in assets with an expense ratio of 0.20%. It requires a high minimum investment of $500,000, suggesting a focus on institutional, accredited investors or high-net-worth individual investors.

Performance metrics include a year-to-date return of 5.44%, a one-year return of 22.78%, and an 85.91% return over five years.

PREIX is out of reach for the average investor due to the high minimum investment acquired. Likely, this fund is recommended by brokers or through investment banks and hedge funds and would come as a package along with other benefits provided by the institution to justify the higher expense fee. It’s unlikely this would be the only investment recommended.

Still, PREIX could still be worth considering as a diversifier for those at the upper echelons of the net worth ladder.

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