Choosing to invest in mutual funds can drastically change an investor’s future earnings potential. Mutuals are a proven method for a financially stable retirement for practically every investor. It is vital to start early, though; a single-decade head start of steady investment can provide exponential growth in the long term. Most mutual funds require an initial investment, but after this is fulfilled, investors can set up scheduled investments, which makes it even easier to prepare for retirement.

Mutual funds are often overlooked as an investment vehicle due to their minimum investment requirement and lack of overall investor interest compared to individual stocks. However, due to their actively managed status, mutual funds are a perfect fit for investors seeking a method of building a solid retirement account without substantial upfront involvement.

The mutuals discussed below all experienced an impressive rate of return, especially for mutual funds, and continue to have solid growth potential, which gives these funds a strong buy rating.

Fidelity Select Semiconductor Portfolio (FSELX)

Fidelity Select Semiconductor Portfolio (MUTF:FSELX) is a fund that primarily focuses on companies within the semiconductor sector both domestically and internationally. Its inception date was Jul. 29, 1985. It has a higher-than-average expense ratio, which is essential for investors to account for, at 0.65%. The fund also has a turnover rate of 32%, which again is higher than most other mutual funds. It also has no minimum investment requirement.

Its top three companies within its portfolio are Nvidia (NASDAQ:NVDA), NXP Semiconductors (NASDAQ:NXPI), and ON Semiconductor (NASDAQ:ON), which comprise 26%, 7% and 7% of the fund, respectively. Some 85% of the fund comprises stocks within the U.S. and 5% of companies in Taiwan and the Netherlands.

FSELX is a significant growth fund for investors seeking a riskier option with the possibility of significant returns, especially for a mutual fund. Over the past year, the fund has risen by 73%, and within the last five years, it has increased by 32%.

FSELX is a solid option for investors interested in a technology-centric fund that may continue to offer impressive returns, which is why it has a strong buy rating.

Vanguard 500 Index Fund (VFIAX)

Vanguard 500 Index Fund (MUTF:VFIAX) is a fund that provides exposure to the 500 largest companies trading on the U.S. stock market. Its inception date was Nov. 13, 2000. It operates as a large blended fund. The fund requires a minimum investment of $3,000. It also features a very low expense ratio of 0.04% and a turnover rate of only 2%.

The S&P fund offers a diverse portfolio of various industries, most notably healthcare, technology and consumer discretionary. The fund’s top three companies are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA).

VFIAX has increased by 23% over the past year and 85% over the last five years.

It offers an outstanding rate of return for investors who buy and hold for the long term. With the minimum investment being $3,000, a large number of investors would still be able to afford an initial contribution. It is a strong buy mutual fund due to its impressive growth rate since its inception.

Vanguard U.S. Growth Fund (VWUSX)

Vanguard U.S. Growth Fund (MUTF:VWUSX) is a large growth fund focused on blue-chip companies. It is Vanguard’s oldest growth fund with an inception date of Jan. 6, 1959. Similar to VFIAX, VWUSX requires a minimum investment of $3,000 and has an expense ratio of 0.30%.

The fund comprises 118 companies trading on the U.S. stock market. Its top three holdings include Microsoft, Amazon (NASDAQ:AMZN), and Nvidia.

VWUSX has considerable exposure to multiple industries, including healthcare, technology, communication services and consumer discretion. The fund has increased by 34% over the past year and returned 83% over the previous five years.

It’s a growth fund that is perfect for investors seeking to invest for retirement. It provides a solid rate of return due to its focus on blue-chip companies, which makes it a strong buy option as a mutual fund that is still available to a vast number of investors with its minimum investment requirement.

As of this writing, Noah Bolton did not hold (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.