Exploring Top Mutual Funds with Legendary Managers Exploring Top Mutual Funds with Legendary Managers

Written By Michael Gary Scott

For investors seeking a success story in the realm of mutual funds, the key lies in following the trail blazed by outperformers.

These funds offer a shield of diversification, acting as a safety net to minimize losses while ushering you into a realm of untold growth opportunities. The winning streak doesn’t stop here. Investing in outperforming mutual funds also gives you direct access to seasoned experts who have honed their craft navigating choppy market waters with the deftness of a seasoned sailor. After all, in the battle of wits that is the financial market, education and expertise often emerge as the steady victors.

Take, for instance, the Fidelity Fund (MUTF:FFIDX).

Year to date, the fund has already steamed ahead with a striking return of 17.21%, far outpacing the S&P 500 which rests at a YTD return of approximately 9.76%. Driving this ascent are sturdy holdings in tech giants like Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA), all of which continue to scale new heights. What’s more, all this is achieved with a humble expense ratio of just 0.42%.

Accord to Fidelity.com, the FFIDX fund has delivered returns of 29.09% over the past year, 8.52% over the last three years, 15.22% over the last five years, and a healthy 13% over the last decade. This fund continues to offer a treasure trove of benefits at a modest cost.

But this standout is not an outlier. Here are three additional top-tier mutual funds deserving of your consideration today.

Fidelity Large Cap Stock Fund (FLCSX)

Large-cap written on a stock ticker. Large-cap stocks.

Year to date, the Fidelity Large Cap Stock Fund (MUTF:FLCSX) leads the race with a 13.91% surge. Over the last year, it posted a commendable 24.07% increase, while the last five years witnessed a solid 13.55% growth. Sporting an expense ratio of 0.84%, this mutual fund boasts stalwarts like Microsoft, Exxon Mobil (NYSE:XOM), General Electric (NYSE:GE), and the ever-promising Nvidia among its 176 holdings as of April 30.

Marching ahead, in the initial quarter of 2024, the fund notched an 11.8% gain, surpassing the S&P 500’s return of 10.56%. The glory of large-cap stocks, backed by tech behemoths like Nvidia basking in the artificial intelligence and machine learning glow, paints a tantalizing picture for the FLCSX fund.

With a middle-of-the-road expense ratio, this fund’s bet on some of the finest names in the tech industry feels like hitting the jackpot, with these stocks continuously on the rise.

See also  Tech Industry: Micron Shares Soar on AI DemandExploring the Impact of Micron Technology's AI Surge

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

Another gem among the elite mutual funds is the Pro Funds Semiconductor Ultra Sector Fund Investor (MUTF:SMPIX). Year to date, the fund boasts a whopping 91.55% growth. Over the past year, it skyrocketed by 161.5%. The past five years were equally impressive, showing a 42.67% surge. Despite a slightly elevated expense ratio of 1.56%, the returns delivered have been nothing short of explosive.

Thanks to its rich blend of top-tier semiconductor stocks such as Nvidia, Broadcom (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD), and Intel (NASDAQ:INTC) among the 42 holdings, this fund seeks daily investment results mirroring 1.5x the daily performance of the Dow Jones U.S. Semiconductor Index. With the rampant growth of AI and machine learning, diving into semiconductor stocks today seems like a ride on a winning horse.

Analysts at Gartner predict a meteoric rise in AI chips revenue, estimating it to hit $71.3 billion in 2024 from $53.7 billion in 2023, with further escalation 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

For those eyeing another contender, the Needham Aggressive Growth Fund (MUTF:NEAGX) rises to the occasion.

Despite a slightly elevated expense ratio of 1.9%, it’s racing ahead of its benchmark with an astounding year-to-date return of 21.5%. Over the last year, it shot up by nearly 51%, while the past five years saw a commendable 22% uptick. Its top-tier holdings include Super Micro Computer (NASDAQ:SMCI), PDF Solutions (NASDAQ:PDFS), and Vicor Corp. (NASDAQ:VICR), among the 80 stocks it houses.

Mainly stocked with small-cap growth stocks, this fund shines bright as small-cap stocks begin their ascent over the financial horizon. Jefferies, in their forecast, have touted small-cap earnings to broaden, accelerate, and catch up with their larger counterparts as the year unfolds, a sentiment backed by legendary investor Stanley Druckenmiller, who recently secured a hefty bullish position on small-cap stocks.

In the intricate dance of financial markets, these three funds with their legendary managers offer a compelling narrative of growth, promise, and prudent investing that investors would do well to keep an eye on.


Exploring 2 Promising Tech Stocks for Future Growth

Unleashing the Potential of Tech Stocks

The tech landscape has been abuzz with activity, propelling the Nasdaq Composite to a 13% surge since the start of the year. The allure of artificial intelligence (AI) in transforming various tech sectors has captivated investors, driving optimism for the future. Industries ranging from cloud computing to chip production, data centers, autonomous vehicles, and consumer products have all felt the reverberations of AI’s disruptive force, setting the stage for prolonged growth.

The Resilience of Tech Stocks Over Time

The tech industry boasts a storied history of delivering consistent gains, making it an enticing playground for both novice and seasoned investors alike. This sector thrives on the perpetual cycle of demand for hardware and software upgrades, rarely experiencing stagnation from one year to the next.

Over the past decade, the Nasdaq-100 Technology Sector index has soared by an impressive 409%, weathering the storm of the COVID-19 pandemic and market upheavals in 2022. Despite these challenges, the rise of AI and other cutting-edge technologies indicates that the tech domain remains fertile ground for prospective investors in the years ahead.

An In-Depth Look at Two Compelling Tech Stock Picks

1. Advanced Micro Devices

At the forefront of chip manufacturing, Advanced Micro Devices (NASDAQ: AMD) commands a pivotal position in the tech realm. The company’s chips power a myriad of devices, from custom-built PCs and laptops to cloud platforms and video game consoles. With AMD’s chips nestled inside everyday gadgets, the company’s pervasive influence often goes unnoticed.

In a groundbreaking move back in 2020, AMD clinched exclusive chip supply deals with industry giants Sony and Microsoft for their flagship gaming consoles, PlayStation 5 and Xbox Series X|S, respectively. The immense success of these consoles, garnering nearly 80 million units sold collectively, underscores the profitability of AMD’s strategic partnerships.

Despite its illustrious past, AMD’s recent focus on expanding its footprint in the AI domain has captured industry attention. Competing head-on with Nvidia in the AI sphere, AMD has rolled out its MI300X AI GPUs, a critical component for constructing AI models. The company launched this GPU lineup in December of the previous year, with early signs indicating a promising trajectory.

In the first quarter of 2024, AMD witnessed a 2% uptick in revenue year over year, surpassing Wall Street projections by $20 million. While this growth may seem modest, the robust performance of key segments signals positive momentum. Notably, a surge in GPU sales fueled an 80% revenue spike in the data center segment, alongside an impressive 85% revenue surge in the client segment driven by heightened CPU sales.

Although AMD faces fierce competition from Nvidia as it vies for market share and looks to expand its AI PC division, the company’s long-term prospects appear bright. Furthermore, AMD’s price-to-earnings ratio has plummeted by 75% over the past six months, reflecting a potential uptick in stock value. Given its commanding stance in the tech industry, AMD emerges as a compelling stock option for investors eyeing 2024 and beyond.

2. Amazon

Amazon (NASDAQ: AMZN) stands out as a premier avenue for tech investment, thanks to its diversified business model. While Amazon initially made waves through its online retail dominance, the company has diversified its portfolio significantly over the years. Alongside securing a mammoth market share in e-commerce, Amazon has emerged as a heavyweight in cloud computing through Amazon Web Services (AWS), ventured into video streaming, grocery services, satellite ventures, and now set its sights on AI technologies.

Amazon’s Dominance in Tech & AI Markets