Top-Performing Fidelity Funds for Retirement
Top-Performing Fidelity Funds for Retirement
The U.S. stock market downturn in early 2025 has yet to shake up the lineup of Fidelity's top-performing mutual funds.
Even with year-to-date losses, the best-performing names in Fidelity's lineup of 312 funds remain heavily concentrated in a select handful of themes and styles.
Namely, technology-focused funds – particularly those with heavy exposure to semiconductors and software – and actively managed, growth-oriented funds with concentrated exposure to large-cap stocks, tend to constitute most of the highest performers.
But despite the strong historical returns, experts continue to caution against chasing past performance, as valuations for these segments remain elevated even after the recent market correction.
"Dumping money into the winners of the last decade means you're deliberately buying what is now expensive compared to the rest of the market, which bodes poorly for expected returns," says Allen Mueller, director of financial planning at investment advisory firm 7 Saturdays Financial.
With that in mind, here's a look at the top eight Fidelity mutual funds, ranked in ascending order by their trailing 10-year annualized returns as of Feb. 28:
Even with year-to-date losses, the best-performing names in Fidelity's lineup of 312 funds remain heavily concentrated in a select handful of themes and styles.
Namely, technology-focused funds – particularly those with heavy exposure to semiconductors and software – and actively managed, growth-oriented funds with concentrated exposure to large-cap stocks, tend to constitute most of the highest performers.
But despite the strong historical returns, experts continue to caution against chasing past performance, as valuations for these segments remain elevated even after the recent market correction.
"Dumping money into the winners of the last decade means you're deliberately buying what is now expensive compared to the rest of the market, which bodes poorly for expected returns," says Allen Mueller, director of financial planning at investment advisory firm 7 Saturdays Financial.
With that in mind, here's a look at the top eight Fidelity mutual funds, ranked in ascending order by their trailing 10-year annualized returns as of Feb. 28:
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Fidelity Nasdaq Composite Index Fund (FNCMX)
The Nasdaq composite is the broader, more diversified counterpart to the Nasdaq-100 index. Whereas the latter is limited to the 100 largest non-financial sector stocks listed on the Nasdaq exchange, the former spans more than 2,800 companies. This includes thousands more mid- and small-cap stocks, which helps keep the Nasdaq composite slightly less top-heavy compared to the Nasdaq-100.
Fidelity offers FNCMX for passive exposure to the Nasdaq composite. The fund charges a 0.29% expense ratio and has a low 2% turnover rate, making it cheaper and more tax efficient compared to most actively managed growth funds. FNCMX has a long track record dating back to 2003 and is well-capitalized with more than $18 billion in assets under management (AUM).
10-year annualized return: 15.3%
The Nasdaq composite is the broader, more diversified counterpart to the Nasdaq-100 index. Whereas the latter is limited to the 100 largest non-financial sector stocks listed on the Nasdaq exchange, the former spans more than 2,800 companies. This includes thousands more mid- and small-cap stocks, which helps keep the Nasdaq composite slightly less top-heavy compared to the Nasdaq-100.
Fidelity offers FNCMX for passive exposure to the Nasdaq composite. The fund charges a 0.29% expense ratio and has a low 2% turnover rate, making it cheaper and more tax efficient compared to most actively managed growth funds. FNCMX has a long track record dating back to 2003 and is well-capitalized with more than $18 billion in assets under management (AUM).
10-year annualized return: 15.3%
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Fidelity Trend Fund (FTRNX)
The phrase "the trend is your friend" comes from the idea that markets tend to move in sustained directions, meaning investors can profit by riding momentum rather than fighting it. A bullish trend-following strategy works by identifying upward-moving assets and staying invested until signs of reversal emerge, aiming to capture extended market rallies across select themes or segments.
FTRNX actively applies this approach and remains overweight mega-cap growth stocks with a tech tilt, as the portfolio manager believes this trend still has room to run. The downside is its high 64% portfolio turnover rate due to the active strategy, which results in relatively high capital gains distributions. In addition, the fund charges a 0.59% expense ratio, which is higher than many passive alternatives.
10-year annualized return: 15.4%
The phrase "the trend is your friend" comes from the idea that markets tend to move in sustained directions, meaning investors can profit by riding momentum rather than fighting it. A bullish trend-following strategy works by identifying upward-moving assets and staying invested until signs of reversal emerge, aiming to capture extended market rallies across select themes or segments.
FTRNX actively applies this approach and remains overweight mega-cap growth stocks with a tech tilt, as the portfolio manager believes this trend still has room to run. The downside is its high 64% portfolio turnover rate due to the active strategy, which results in relatively high capital gains distributions. In addition, the fund charges a 0.59% expense ratio, which is higher than many passive alternatives.
10-year annualized return: 15.4%
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Fidelity Growth Discovery Fund (FDSVX)
"Growth stocks are those that are growing or are expected to grow earnings at an above-average rate, for which investors are willing to pay a premium," says Daniel Dusina, chief investment officer at wealth management firm Blue Chip Partners Inc. "The last 10 years, which consisted of ultra-low interest rates and a relatively stable domestic economy, aligned well for growth stocks."
FDSVX is actively managed by Asher Anolic and Jason L. Weiner, with tenures dating back to 2017 and 2007, respectively. Over the trailing 10- and three-year periods, this fund has slightly outperformed the Russell 3000 Growth Index while markedly outperforming the Morningstar "Large Growth" peer category average. However, it comes with a high 58% turnover rate and 0.66% expense ratio.
10-year annualized return: 15.7%
"Growth stocks are those that are growing or are expected to grow earnings at an above-average rate, for which investors are willing to pay a premium," says Daniel Dusina, chief investment officer at wealth management firm Blue Chip Partners Inc. "The last 10 years, which consisted of ultra-low interest rates and a relatively stable domestic economy, aligned well for growth stocks."
FDSVX is actively managed by Asher Anolic and Jason L. Weiner, with tenures dating back to 2017 and 2007, respectively. Over the trailing 10- and three-year periods, this fund has slightly outperformed the Russell 3000 Growth Index while markedly outperforming the Morningstar "Large Growth" peer category average. However, it comes with a high 58% turnover rate and 0.66% expense ratio.
10-year annualized return: 15.7%
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Fidelity OTC Portfolio (FOCPX)
FOCPX is a unique actively managed fund. It can invest in both Nasdaq-listed stocks and some over-the-counter (OTC) stocks. This mandate allows the fund to own some hard-to-access foreign equities that have chosen to trade OTC instead of on an exchange. The fund also has a technology tilt of at least 25% but has leeway to invest in growth or value stocks as the portfolio manager deems fit.
FOCPX is a fairly concentrated fund. Despite having 158 holdings, 65% of the fund's weight is concentrated in the 10 largest holdings. These include many members of the "Magnificent Seven," notably Nvidia Corp. (NVDA), Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), Alphabet Inc. (GOOGL, GOOG) and Meta Platforms Inc. (META). The fund charges a 0.73% expense ratio.
10-year annualized return: 16.7%
FOCPX is a unique actively managed fund. It can invest in both Nasdaq-listed stocks and some over-the-counter (OTC) stocks. This mandate allows the fund to own some hard-to-access foreign equities that have chosen to trade OTC instead of on an exchange. The fund also has a technology tilt of at least 25% but has leeway to invest in growth or value stocks as the portfolio manager deems fit.
FOCPX is a fairly concentrated fund. Despite having 158 holdings, 65% of the fund's weight is concentrated in the 10 largest holdings. These include many members of the "Magnificent Seven," notably Nvidia Corp. (NVDA), Apple Inc. (AAPL), Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), Alphabet Inc. (GOOGL, GOOG) and Meta Platforms Inc. (META). The fund charges a 0.73% expense ratio.
10-year annualized return: 16.7%
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Fidelity Select Software and IT Services Portfolio (FSCSX)
"Along with growth stocks outperforming value stocks over the last decade, we also saw a lot of tech sector development that fueled the rise in valuations," says Anessa Custovic, chief investment officer at Cardinal Retirement Planning Inc. A good deal of this outperformance was driven by the software sub-sector, spanning industries like enterprise software, cloud computing and cybersecurity.
For concentrated exposure to 49 holdings in the software sub-sector, Fidelity offers FSCSX. Top holdings in this fund include Microsoft, Salesforce Inc. (CRM), Adobe Inc. (ADBE), Autodesk Inc. (ADSK), Workday Inc. (WDAY), Palo Alto Networks Inc. (PANW) and Intuit Inc. (INTU). The turnover rate for this fund remains relatively low at 14%, but it does charge a somewhat high 0.64% expense ratio.
10-year annualized return: 16.7%
"Along with growth stocks outperforming value stocks over the last decade, we also saw a lot of tech sector development that fueled the rise in valuations," says Anessa Custovic, chief investment officer at Cardinal Retirement Planning Inc. A good deal of this outperformance was driven by the software sub-sector, spanning industries like enterprise software, cloud computing and cybersecurity.
For concentrated exposure to 49 holdings in the software sub-sector, Fidelity offers FSCSX. Top holdings in this fund include Microsoft, Salesforce Inc. (CRM), Adobe Inc. (ADBE), Autodesk Inc. (ADSK), Workday Inc. (WDAY), Palo Alto Networks Inc. (PANW) and Intuit Inc. (INTU). The turnover rate for this fund remains relatively low at 14%, but it does charge a somewhat high 0.64% expense ratio.
10-year annualized return: 16.7%
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Fidelity Blue Chip Growth Fund (FBGRX)
FBGRX is a staple in many workplace 401(k) plans and is one of the most successful, longest-running actively managed funds out there. With a track record dating back to 1987, this fund has consistently outperformed the Russell 1000 index since inception and over the trailing 10-, five- and one-year periods. The fund has also lowered its expense ratio over the years to 0.47% at present.
FBGRX's mandate is to invest in blue-chip growth stocks, which Fidelity defines as "well-known, well-established and well-capitalized." Since 2009, the fund has been managed by Sonu Kalra. The fund emphasizes stocks believed to possess above-average earnings growth potential, sustainable business models, competitive advantages, pricing power and strong management teams.
10-year annualized return: 17.1%
FBGRX is a staple in many workplace 401(k) plans and is one of the most successful, longest-running actively managed funds out there. With a track record dating back to 1987, this fund has consistently outperformed the Russell 1000 index since inception and over the trailing 10-, five- and one-year periods. The fund has also lowered its expense ratio over the years to 0.47% at present.
FBGRX's mandate is to invest in blue-chip growth stocks, which Fidelity defines as "well-known, well-established and well-capitalized." Since 2009, the fund has been managed by Sonu Kalra. The fund emphasizes stocks believed to possess above-average earnings growth potential, sustainable business models, competitive advantages, pricing power and strong management teams.
10-year annualized return: 17.1%
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Fidelity Select Technology Portfolio (FSPTX)
"Overall, growth and information technology have come to dominate the U.S. market over the trailing 10-year period," Dusina says. "Funds with high exposure to tech heavyweights such as Apple, Microsoft and Nvidia were rewarded with market-leading returns." Fidelity's sector-specific fund for technology is FSPTX, which charges a 0.64% expense ratio and has a 43% portfolio turnover rate.
FSPTX is a fairly concentrated fund. The top 10 holdings collectively make up 71% of its portfolio, with 21.7% allocated to Nvidia, 16.4% allocated to Apple and 9.5% allocated to Microsoft. The other top holdings comprise a mixture of smaller software and semiconductor companies. Despite the relatively high expense ratio, FSPTX has historically managed to slightly outperform the MSCI IMI Info Tech 25/50 index.
10-year annualized return: 19.8%
"Overall, growth and information technology have come to dominate the U.S. market over the trailing 10-year period," Dusina says. "Funds with high exposure to tech heavyweights such as Apple, Microsoft and Nvidia were rewarded with market-leading returns." Fidelity's sector-specific fund for technology is FSPTX, which charges a 0.64% expense ratio and has a 43% portfolio turnover rate.
FSPTX is a fairly concentrated fund. The top 10 holdings collectively make up 71% of its portfolio, with 21.7% allocated to Nvidia, 16.4% allocated to Apple and 9.5% allocated to Microsoft. The other top holdings comprise a mixture of smaller software and semiconductor companies. Despite the relatively high expense ratio, FSPTX has historically managed to slightly outperform the MSCI IMI Info Tech 25/50 index.
10-year annualized return: 19.8%
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Fidelity Select Semiconductors Portfolio (FSELX)
Each era has had its defining market-driving technology – railroads in the Gilded Age, the internet during the dot-com boom, and in the 2020s, it's semiconductors. These silicon microchips power everything from smartphones and electric vehicles to data centers and medical devices, with artificial intelligence, cloud computing and autonomous systems driving unprecedented demand for processing power.
Unsurprisingly, Fidelity's top-performing mutual fund over the preceding decade is FSELX. This fund owns a concentrated total of 55 holdings, with the top 10 accounting for almost 80% of its portfolio. It is dominated by Nvidia at 25.6%, followed by Broadcom Inc. (AVGO) at 8% and Marvel Technology Inc. (MRVL) and Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) at 7% apiece. FSELX charges a 0.65% expense ratio.
10-year annualized return: 24.5%
Each era has had its defining market-driving technology – railroads in the Gilded Age, the internet during the dot-com boom, and in the 2020s, it's semiconductors. These silicon microchips power everything from smartphones and electric vehicles to data centers and medical devices, with artificial intelligence, cloud computing and autonomous systems driving unprecedented demand for processing power.
Unsurprisingly, Fidelity's top-performing mutual fund over the preceding decade is FSELX. This fund owns a concentrated total of 55 holdings, with the top 10 accounting for almost 80% of its portfolio. It is dominated by Nvidia at 25.6%, followed by Broadcom Inc. (AVGO) at 8% and Marvel Technology Inc. (MRVL) and Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) at 7% apiece. FSELX charges a 0.65% expense ratio.
10-year annualized return: 24.5%