3 Mutual Funds Set To Gain From AI's Accelerated Adoption

3 Funds for Maximum Returns

Given the prospects of AI, we have shortlisted three mutual funds that carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have encouraging year-to-date returns. Additionally, the minimum initial investment is within $5000. We expect these funds to outperform their peers in the future.

The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds.

Fidelity Select Technology Portfolio (FSPTX - Free Report) fund aims for capital appreciation. The fund invests primarily in equity securities, especially common stocks of companies that are engaged in offering, using, or developing products, processes, or services that will provide or will benefit significantly from technological advances and improvements.

This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. Specifically, this non-diversified fund that has returned 31.1% and 30.5% in the past three and five years, respectively.

FSPTX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.71%, which is below the category average of 1.24%. Some of the fund’s top AI stock holdings are Microsoft, Nvidia, and Apple.

Fidelity Select Semiconductors Portfolio (FSELX - Free Report) fund aims for capital appreciation. The non-diversified fund invests the majority of its assets in securities of companies principally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment.

This Zacks Sector – Tech product has a history of positive total returns for more than 10 years. Specifically, FSELX has returned 27.9% and 30.2% over the past three and five years, respectively.

FSELX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.72%, which is below the category average of 1.24%. Some of the fund’s top AI stock holdings are Intel, Nvidia, and Micron Technology.

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