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This year, major U.S. indexes like the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average have given investors positive returns of 9%, 7.9% and 2.9%, respectively.

The Consumer Price Index (CPI) saw a dip for the first time in more than four years. The CPI fell 0.1% in June due to cheap gasoline prices and moderating rents. On a yearly basis, CPI increased by 3%, suggesting that inflation in the second quarter resumed its downward trend.

The personal consumption expenditure index (PCE), the Federal Reserve’s most-preferred gauge for inflation, also came up with a favorable reading for the month of June. The PCE increased 0.1% monthly, in line with the street’s expectations. The GDP growth rate for second-quarter 2024, has increased at an annual rate of 2.8% against the consensus estimate of 1.9%. The real GDP growth was 1.4% in the first quarter.

Amid favorable economic data, an unexpectedly weak employment report released by the Bureau of Labor Statistics on Aug 2 for the month of July, rekindled worries of a recession. The report revealed that the U.S. unemployment rate increased to 4.3% marking the fourth consecutive monthly rise.

The Fed, in the last Federal Open Market Committee (FOMC) meeting, kept the benchmark interest rates unchanged in the range of 5.25-5.50% for the eighth time in a row. Fresh worries emerged about whether the Fed will be able to make a soft landing for the economy while continuing with its “higher for longer” interest policy to bring down inflation to its 2% target.

Amid choppy market conditions, 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 44.2 million individual investors and $12.6 trillion of assets under administration as of Dec 31, 2023.

Fidelity Investment company has more than 7,4000 associates in nine 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 five Fidelity mutual funds that have wide exposure in industries like finance, industrial cyclical, utilities, technology, health, and energy. These have not only preserved investors’ wealth but also generated excellent returns.

The funds boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive year-to-date (YTD), three-year and five-year annualized returns, and minimum initial investments within $5000. The funds carry an expense ratio of 1% or less. Notably, mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges mostly associated with stock purchases.

Fidelity Advisor Semiconductors (FELIX - Free Report) fund invests most of its net assets in common stocks of domestic and foreign companies that are principally engaged in the design, manufacture, or sale of semiconductors and semiconductor equipment. FELIX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.

Adam Benjamin has been the lead manager of FELIX since Mar 16, 2020. Most of the fund’s holdings were in companies like NVIDIA (24.8%), NXP Semiconductors (6.7%), and Micron Technology (6.4%) as of Apr 30, 2024.

As of Jun 30, 2024, FELIX’s YTD, three-year, and five-year annualized returns were 45.6%, 28.8%, and 37.3%, respectively. FELIX has an annual expense ratio of 0.73%.

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

Fidelity Advisor Energy (FANIX - Free Report) fund invests most of its net assets in common stocks of domestic and foreign companies that areprincipally engaged in the energy sectors like the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale and solar power. FANIX 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 FANIX since Jan 1, 2020. Most of the fund’s holdings was in companies like Exxon Mobil (24.4%), Cenovus Energy (6.1%) and Schlumberger (5.1%) as of Apr 30, 2024.

As of Jun 30, 2024, FANIX’s YTD, three-year and five-year annualized returns are 12.1%, 25.7% and 13.5%, respectively. FANIX has an annual expense ratio of 0.73%.

Fidelity Natural Resources Fund (FNARX - Free Report) fund invests most of its net assets in precious metals and common stocks of domestic and foreign companies that areengaged in engaged in owning or developing natural resources, or supplying goods and services to such companies, and in precious metals. FNARX advisors choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.

Ashley Fernandes has been the lead manager of FNARX since Jan 1, 2021. Most of the fund’s exposure is in companies like Exxon Mobil (18.5%), Imperial Oil (8.2%) and MEG Energy (6.9%) as of Feb 29, 2024.

As of Jun 30, 2024, FNARX’s YTD, three-year and five-year annualized returns of 14.4%, 21.7% and 14.1%, respectively. FNARX has an annual expense ratio of 0.76%.

Fidelity Large Cap Stock (FCLKX - Free Report) invests most of its net assets in common stocks of large market capitalization companies with market capitalization similar to the companies listed on the Russell 1000 Index or the S&P 500 Index. FCLKX advisors generally invest in issues of both domestic and foreign companies.

Matthew W. Fruhan has been the lead manager of FCLKX since May 25, 2017. Most of the fund’s exposure is in companies like Microsoft (7.9%), General Electric (6.3%) and Exxon Mobil (5.6%) as of Jan 31, 2024.

As of Jun 30, 2024, FCLKX’s YTD, three-year and five-year annualized returns are 17.0%, 12.7% and 16.1%, respectively. FCLKX has an annual expense ratio of 0.45%.

Fidelity Select Pharmaceuticals Portfolio (FPHAX - Free Report) fund invests most of its net assets in common stocks of domestic and foreign companies that areengaged in the research, development, manufacture, sale, or distribution of pharmaceuticals and drugs of all types. FPHAX advisors choose to invest in stocks based on fundamental analysis factors such as financial condition, industry position, as well as market and economic conditions.

Karim Suwwan de Felipe has been the lead manager of FPHAX since Jul 1, 2017. Most of the fund’s exposure was in companies like Eli Lilly (24.2%), Novo Nordisk (14.4%) and Astrazeneca (8.2%) as of Feb 29, 2024.

As of Jun 30, 2024, FPHAX’s YTD, three-year and five-year annualized returns are 26.6%, 12.3% and 15.2%, respectively. FPHAX has an annual expense ratio of 0.74%.

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