Investors are concerned about the impact of a new tariff regime on global trade and supply-chain management. President Donald Trump’s stiff tariff of 10% on Chinese goods have sparked fears of a trade war. In response, China imposed targeted tariffs on U.S. imports and put several companies, including Google, on notice for probable sanctions.

Domestic inflation increased in December to an eight-month high due to robust consumer spending on goods and services. The personal consumption expenditure (PCE) index, the Fed’s preferred inflation gauge, rose 0.3% sequentially in December and 2.6% from the year-ago levels. Personal income rose 0.4% in December after increasing 0.3% in the prior month. Consumer spending jumped a solid 0.7% over the same period against the upwardly revised 0.6% in November.

The Institute of Supply Management reported that the manufacturing purchasing managers’ index (PMI) for the month of January came in at 50.9%after a prolonged contraction of 26 consecutive months. Any reading above 50% indicates expansion in manufacturing activities. 

With a long-term perspective in mind, mutual fund investing can help those who wish to diversify their portfolio among various asset classes but lack professional e xpertise in managing funds. Fidelity mutual funds like Fidelity Select Energy (FSENX Quick QuoteFSENX - Free Report) , Fidelity New Millennium Fund (FMILX Quick QuoteFMILX - Free Report) , Fidelity Select Insurance Portfolio (FSPCX Quick QuoteFSPCX - Free Report) and Fidelity Series Large Cap Stock Fund (FGLGX Quick QuoteFGLGX - Free Report)  should be good choices since they provide low-cost and uncomplicated equity funds that can help investors meet their goals.

These funds have wide exposure in industries like finance, industrial cyclical, utilities, technology and energy. These have not only preserved investors’ wealth but also generated excellent returns

Why Invest in Fidelity Mutual Funds?

Fidelity mutual funds would be a compelling choice for investors. This is because Fidelity mutual funds have given positive returns in the past and are expected to perform well in the long run.

Headquartered in Boston, MA, Fidelity Investment is one of the oldest and most trusted mutual fund companies in the world. The company was founded in 1946 and had 51.5 million individual investors and $15 trillion of assets under administration as of Sept. 30, 2024.

Fidelity Investment company has more than 7,6000 associates in 11 countries across North America, Europe, Asia and Australia to carry out extensive and in-depth research and provide potential investment avenues worldwide to their clients.

The company provides best-in-the-class financial planning, advisory services, retirement planning wealth management, brokerage services and college services to its clients. Thus, investors who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds can choose Fidelity mutual funds. Fidelity Investment sells its mutual fund products directly to its clients, which results in a zero-load charge.

We have thus selected four Fidelity mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three-year and five-year annualized returns, and minimum initial investments within $5000. The funds carry an expense ratio of less than 1%. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

Fidelity Select Energy fund invests most of its net assets in common stocks of domestic and foreign companies that areprincipally engaged in the energy field, including the conventional areas of oil, gas, electricity, and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. FSENX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.

Maurice FitzMaurice has been the lead manager of FSENX since Jan. 1, 2020. Most of the fund’s exposure was in companies like Exxon Mobil (24.9%), Cenovus Energy (5.9%) and Schlumberger (5%) as of Aug. 31, 2024.

FSENX’s three-year and five-year annualized returns are almost 19.7% and 12.5%, respectively. FSENX has an annual expense ratio of 0.66%.

To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.

Fidelity New Millennium Fund invests most of its net assets in common stocks of small and medium-sized companies with either growth or value or sometimes both characteristics. FMILX advisors generally invest in companies that may benefit from long-term changes due to technological advances, product innovation, economic plans, demographics, social attitudes, and other factors.

Daniel Sherwood has been the lead manager of FMILX since Oct. 19, 2022. Most of the fund’s exposure is in companies like Microsoft (6.7%), NVIDIA (6.4%) and Apple (5.3%) as of Aug. 31, 2024.

FMILX has three-year and five-year annualized returns of 16.7% and 15.8%, respectively. FMILX has an annual expense ratio of 0.80%.

Fidelity Select Insurance Portfolio fund invests most of its net assets in common stocks of domestic and foreign companies that areengaged in underwriting, reinsuring, selling, distributing, or placing property and casualty, life, or health insurance. FSPCX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.

Fahim Razzaque has been the lead manager of FSPCX since July 13, 2022. Most of the fund’s exposure is in companies like Chubb (9.8%), Marsh & Mclennan (9.7%) and Arthur J.Gallagher (9.2%) as of Aug. 31, 2024.

FSPCX’sthree-year and five-year annualized returns of 16.1% and 15.1%, respectively. FSPCX has an annual expense ratio of 0.70%.

Fidelity Series Large Cap Stock Fund invests most of its net assets in common stocks of domestic and foreign issues with either growth or value or both characteristics. FGLGX advisors invest in large-cap companies with market capitalization similar to the companies listed on the Russell 1000 Index or the S&P 500 Index.

Matthew W. Fruhan has been the lead manager of FGLGX since Dec. 6, 2012. Most of the fund’s exposure was to companies like Microsoft (7%), Exxon Mobil (6%) and General Electric (5.6%) as of Sept. 30, 2024.

FGLGX’s three-year and five-year annualized returns are nearly 13.8% and 15.4%, respectively. FGLGX has an annual expense ratio of 0.00%.

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