Mutual Fund Mavens: 3 Funds with Legendary Managers Worth Betting On


  • If you’re looking to invest in mutual funds, here are some, like Fidelity Fund (MUTF:FFIDX), that outperform the market.
  • Fidelity Large Cap Stock Fund (FLCSX) has been helped by the AI and machine-learning revolution.
  • ProFunds Semiconductor UltraSector Fund (SMPIX) is beating the Dow Jones U.S. Semiconductor Index by 1.5x.
  • Needham Aggressive Growth Fund (NEAGX) focuses on small-cap growth stocks.
Top mutual funds - Mutual Fund Mavens: 3 Funds with Legendary Managers Worth Betting On

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If you want to find success among top mutual funds, follow the outperformers.

In many cases, these funds will provide diversification, helping you to minimize losses while exposing you to a good deal of upside opportunities. Better, with outperforming mutual funds, you’ll also (well, usually) get access to experts who know how to carefully navigate various market storms and chaos based on their expertise. More often than not, education and expertise will win the race.

Look at the Fidelity Fund (MUTF:FFIDX), for example.

Year to date, the fund is already showing a return of 17.21%, as compared to the S&P 500’s YTD return of about 9.76%. Helping to push FFIDX higher are holdings in Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA), which are still exploding higher. All with a low expense ratio of 0.42%.

Better, according to, the FFIDX fund returned 29.09% over the last year, 8.52% over the last three years, 15.22% over the last five years, and about 13% over the last 10 years. Even now, the fund still offers a good deal of advantages at a low cost.

But it’s not the only standout to consider. Here are three more of the top mutual funds to buy and hold today.

Fidelity Large Cap Stock Fund (FLCSX)

Large-cap written on a stock ticker. Large-cap stocks.
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Year to date, the Fidelity Large Cap Stock Fund (MUTF:FLCSX) is up 13.91%. Over the last year, it’s up 24.07%, and over the last five years, it’s up 13.55%. With an expense ratio of 0.84%, the mutual fund holds Microsoft, Exxon Mobil (NYSE:XOM), General Electric (NYSE:GE), and Nvidia to name a few of its 176 holdings as of April 30.

Better, in the first quarter of 2024, the fund gained 11.8%, which outpaced the 10.56% return of the S&P 500.

Helping, large-cap stocks have been explosive this year thanks to tech giants, like Nvidia. All of which are surging with the artificial intelligence/machine learning boom. Showing no signs of cooling, that could be wildly beneficial for the FLCSX fund. 

With an average expense ratio, the fund can’t go wrong holding some of the world’s best tech stocks, which continue to shoot higher.

ProFunds Semiconductor UltraSector Fund (SMPIX)

AI. Circuit board. Technology background. Central Computer Processors CPU concept. Motherboard digital chip. Tech science background. Integrated communication processor. 3D illustration representing semiconductor stocks. Semiconductors Stocks to Sell
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Another one of the top mutual funds to buy and hold is the Pro Funds Semiconductor Ultra Sector Fund Investor (MUTF:SMPIX). Year to date, the fund is up 91.55%. Over the last year, it’s up 161.5%. Over the last five years, it’s up 42.67%. While it has an above-average expense ratio of 1.56%, the returns here have been explosive.

All thanks to its holdings in top heavily-demanded semiconductor stocks, like Nvidia, Broadcom (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC) to name a few of its 42 holdings.

With its strategy, the fund seeks daily investment results of 1.5x the daily performance of the Dow Jones U.S. Semiconductor Index. Plus, at the moment, you really can’t go wrong betting on semiconductor stock upside, especially with the AI and machine learning stories.

According to analysts at Gartner, “total AI chips revenue in 2024 to be $71.3 billion (up from $53.7 billion in 2023) and increasing to $92 billion in 2025.”

Needham Aggressive Growth Fund (NEAGX)

Hand of woman watering small plant in pot shaped like growing graph representing growth stocks. Sleeper Growth Stocks
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We can also look at the Needham Aggressive Growth Fund (MUTF:NEAGX).

While it does have an above-average expense ratio of 1.9%, it’s also outperforming its benchmark index with a year-to-date return of 21.5%. Over the last year, it’s up nearly 51%. Over the last five years, it’s up about 22%. At the moment, some of its top holdings include Super Micro Computer (NASDAQ:SMCI), PDF Solutions (NASDAQ:PDFS) and Vicor Corp. (NASDAQ:VICR) to name a few of its 80 holdings.

Most of its holdings are small-cap growth stocks, which are showing big signs of life. In fact, according to analysts at Jefferies, small-cap stocks are starting to outperform. “As the year rolls along, small-cap earnings are set to broaden, accelerate, and play a game of catch-up with large,” said the firm, as quoted by CNBC.

Even more impressive, billionaire Stanley Druckenmiller revealed a substantial bullish position in small-cap stocks recently. According to CNBC, he bought $664 million worth of call options on the iShares Russell 2000 ETF (NYSEARCA:IWM).

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

Ian Cooper, a contributor to, has been analyzing stocks and options for web-based advisories since 1999.

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