3 Best-Performing Fidelity Mutual Funds to Buy for 2H 2026
The U.S. economy entered the second half of 2026 with a mixed but encouraging picture. Easing tensions in the Middle East helped improve market sentiment. Home prices remained resilient as the Case-Shiller 20-city index rose 1.1% in April, beating expectations, even with mortgage rates hovering between 5.99% and 6.25%. June consumer confidence edged up to 91.2 from a downwardly revised 90.6 in May. According to reports published by the Institute for Supply Management (ISM), business activity remained in expansion territory, with manufacturing and services readings above the 50 mark. However, trade remained a weak spot, with the May trade deficit widening to $77.6 billion, reflecting the ongoing global trade adjustments.
The labor market told a story of slower but steady progress. ADP reported 98,000 private-sector jobs in June, while the official nonfarm payroll report showed a softer gain of 57,000 jobs. Even so, unemployment edged down to 4.2%, weekly jobless claims held at a manageable 215,000, and wage growth stayed healthy at 3.5% year over year. Together, the data suggest that the economy is cooling rather than stalling, with slower hiring, steady consumer demand, and manageable inflation pressures helping keep the expansion on track.
Amid such market conditions, mutual fund investing can help those who wish to diversify their portfolio among various asset classes but lack professional expertise in managing funds. Fidelity mutual funds, such as Fidelity Select Technology FSPTX, Fidelity Growth Company Fund FDGRX and Fidelity Value Strategies Fund FSLSX, 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, such as 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 Investments 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 $17.5 trillion of assets under administration as of Sept. 30, 2025.
Fidelity Investments has more than 80,000 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-class financial planning, advisory services, retirement planning, wealth management and brokerage 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 Investments sells its mutual fund products directly to its clients, which results in a zero-load charge.
We have thus selected three 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 Technology invests most of its net assets in common stocks of domestic and foreign companies that areprincipally engagedin offering, using, or developing products, processes, or services that will benefit significantly from technological advances and improvements. FSPTX chooses to invest in stocks based on fundamental analysis factors such as each issuer’s financial condition, industry position, and market and economic conditions.
Adam Benjamin has been the lead manager of FSPTX since Jan. 18, 2022. Most of the fund’s exposure was in companies like NVIDIA (24.6%), Apple(12.6%) and Microsoft (6.6%) as of Feb. 28, 2026.
As of May 31, 2026, FSPTX’s year-to-date and one-year annualized returns are nearly 39.1% and 78.4%, respectively. FSPTX has an annual expense ratio of 0.60%.
To see how this fund performed compared to its category and other 1, 2, and 3 Ranked Mutual Funds, please click here.
Fidelity Growth Company Fund invests most of its net assets in common stocks of domestic and foreign companies that the fund’s advisor believes have above-average growth potential. FDGRX advisors generally choose to invest in stocks based on fundamental analysis factors like financial condition and industry position, along with market and economic conditions.
Steven S. Wymer has been the lead manager of FDGRX since Jan. 1, 1997. Most of the fund’s exposure was in companies like NVIDIA (15.7%), Apple(7.6%) and Microsoft (6.1%) as of Feb. 28, 2026.
As of May 31, 2026, FDGRX’s year-to-date and one-year annualized returns are nearly 22.8% and 57.5%, respectively. FDGRX has an annual expense ratio of 0.69%.
Fidelity Value Strategies Fund invests the majority of its net assets in the common stocks of domestic and foreign companies that its advisor believes are undervalued compared to factors such as assets, sales, earnings, or growth potential. FSLSX advisors prefer to invest in medium-sized companies, but also may invest substantially in larger or smaller companies.
Matthew Friedman has been the lead manager of FSLSX since Sept. 14, 2016. Most of the fund’s exposure was in companies like Western Digital (3.2%), Sandisk (1.8%) and Imperial Oil (1.4%) as of Feb. 28, 2026.
As of May 31, 2026, FSLSX’s year-to-date and one-year annualized returns are nearly 20.4% and 41.3%, respectively. FSLSX has an annual expense ratio of 0.66%.
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This article originally published on Zacks Investment Research (zacks.com).