Mutual funds are one of the most significant investment vehicles, especially for the long term. Compared to a portfolio managed by an individual investor, they require relatively low effort and day-to-day action that could become very overwhelming over time.

It’s a great way to build wealth slowly and consistently over multiple decades, which could lead to a very comfortable retirement, especially for those investors who buy in early.

Below, I discuss three mutual funds that have performed remarkably well over this past year. All these funds surpass the returns of the S&P 500 within the last year, which is only 23%.

Fidelity Select Semiconductor Portfolio (FSELX)

Fidelity Select Semiconductor Portfolio (MUTF:FSELX) is a fund that primarily invests in companies that manufacture and sell semiconductors or related products. The fund was inception on July 29, 1985. It also has a relatively high expense ratio of 0.65%. A turnover ratio of 32% is around average for a mutual fund, and total assets under management are roughly $21 billion. It also offers no minimum investment requirement.

The FSELX fund is one of the best-performing mutual funds out there. It has returned 56% over this past year, and over the last five years, it has returned 38%.

The fund’s top three holdings include Nvidia (NASDAQ:NVDA), which represents approximately 28% of the total assets, NXP Semiconductors (NASDAQ:NXPI), and ON Semiconductor (NASDAQ:ON).

The fund’s goal is capital appreciation. It has a higher risk profile than most other mutual funds, but it has also rewarded investors with outstanding returns. It’s a large growth fund with 85% U.S. equities and a small portion invested in Taiwanese and European assets.

FSELX is a great choice for investors seeking a larger stake in the semiconductor market. It also offers investors who can handle greater inherent risk compared to other mutual funds a great choice.

Fidelity Large Cap Growth Index Fund (FSPGX)

Fidelity Large Cap Growth Index Fund (MUTF:FSPGX) is a significant growth fund that seeks to track the overall returns of U.S. equities trading at the largest market cap. It is a relatively new mutual fund with an inception date of June 7, 2016. It has a very low expense ratio of 0.035%, a 15% turnover ratio, and approximately $27 billion in total assets under management. It also offers no minimum investment requirement.

Its top three holdings include Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia.

The largest sector is technology, which comprises roughly 45% of the fund. Other sectors, such as consumer discretionary, communication services, and health care, also make up a considerable part of the fund.

The fund has returned 34% in the last year and 19% over the last five years.

FSPGX is a great mutual fund for most investors. It’s composed of some of the largest trading U.S. stocks, and with its low expense ratio, it could be a solid long-term investment choice.

Vanguard Growth Index Fund (VIGAX)

Vanguard Growth Index Fund (MUTF:VIGAX) is a large growth fund that invests primarily in large-cap U.S. equities. Its inception was on November 13, 2000. It offers investors a low expense ratio of 0.05%. The fund’s turnover ratio is 5%, and total assets under management are approximately $235 billion. This fund requires a minimum investment of $3,000.

The fund’s top three holdings include Microsoft, Apple, and Nvidia. 58% of the fund comprises technology companies, with other major sectors including consumer discretionary, industrials, and health care.

Moreover, the fund has returned 33% over the past year and 136% over the last five years. This fund is a very solid choice for long-term investors due to its impressive rate of return. It should be considered even despite 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.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.