Investing for retirement may seem difficult, from trying to sort through a long list of stocks you’ll be okay with holding for a considerable amount of time to having to keep a close eye on the overall market fluctuations. Mutual funds offer a solution for many investors who wish to take a more passive role in investing.
Mutual Funds offer strong returns with relatively little continued attention. These mutual funds are a great way to prepare for retirement and can help provide a large nest egg for many individuals.
Below, I discuss three mutual funds that investors should strongly consider for their next investment opportunity. These funds have provided solid returns recently and still offer considerable upside potential.
Fidelity Blue Chip Growth Fund (FBGRX)
Fidelity Blue Chip Growth Fund (MUTF:FBGRX) is a large growth fund focusing on long-term capital appreciation. It was inception on Dec. 21, 1987. Its expense ratio is 0.48%, and its turnover ratio is 17%. The portfolio has approximately $67 billion in total assets under management. It does not require a minimum investment.
The fund primarily focuses on information technology equities in the U.S. It also provides exposure to consumer discretionary and communication services stocks. Approximately 80% of the total fund is comprised of well-established blue chip stocks.
The top three holdings of FBGRX are Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT)
The fund’s price has increased by 39% over the past year and more than doubled over the last five years.
Fidelity Blue Chip Growth Fund is a solid mutual fund for investors seeking long-term growth potential. It comprises very well-established stocks that have recently provided strong returns.
Vanguard 500 Index Fund (VFIAX)
Vanguard 500 Index Fund (MUTF:VFIAX) is a fund that tracks closely follows the S&P 500. It is a large-cap blended fund. Its date of inception was Nov. 13, 2000. Its turnover rate is approximately 2%. Its total assets under management is roughly 1.2 trillion. It does require a minimum investment of $3,000. Its expenses ratio is 0.04%.
The fund is fairly diversified. Information technology is the largest sector, accounting for roughly 33% of the fund. Other notable sectors are financials, healthcare, and consumer discretionary.
The top three holdings of the Vanguard 500 Index Fund include Microsoft, Nvidia, and Apple.
Over the past year, the price of the fund has increased by 25%, and over the past five years, it has grown by 90%.
VFIAX provides investors with full exposure to the broad U.S. stock market. It has experienced relatively strong returns recently. It offers a fairly low expense ratio that could significantly impact investors over the long term.
Fidelity Select Semiconductors Portfolio (FSELX)
Fidelity Select Semiconductors Portfolio (MUTF:FSELX) is a fund that is principally focused on companies within the semiconductor industry. It has a 32% turnover ratio and was inception on July 29, 1985. It also has a fairly expensive expense ratio of 0.65%. Its total assets under management are roughly $21 billion, and it does not require a minimum investment.
The top three holdings of the fund include Nvidia, Micron Technology (NASDAQ:MU), and Taiwan Semiconductor Manufacturing (NYSE:TSM).
The fund is comprised of primarily U.S.-based equities, with some exposure to Asia, European, and emerging markets stocks.
The fund has returned approximately 44% over the past year and more than tripled over the last five years.
Fidelity Select Semiconductors Portfolio is one of the best-performing mutual funds due to its exposure to the semiconductor industry. Considering its high expense ratio, it is expensive to own, especially for the long term, but it still has the ability to provide investors with continued growth potential over the long term.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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.
