8 Top-Performing Fidelity Funds for Retirement
When looking for mutual fund ideas, many beginner investors start with past performance.
It’s natural to start by looking at what’s worked best. Fidelity’s screener makes that especially easy, allowing investors to sort funds by annualized performance over the past 10, five-, three- or one-year periods. But chasing the best-performing funds without context can lead to unrealistic expectations and overlooked risks.
Past outperformance doesn’t guarantee future returns, which most investors understand. But there’s also survivorship bias to keep in mind. The funds that make it into these rankings are, by definition, the winners that lasted. Dozens of underperforming funds quietly closed or merged along the way. Their results aren’t reflected in the track records you see.
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Many of Fidelity’s strongest performers are actively managed mutual funds, which come with higher expense ratios. That means every year, a chunk of your return is shaved off in fees. Index funds, including many of Fidelity’s own low-cost offerings, don’t face this cost as much. Some of Fidelity’s index funds even have zero expense ratios, removing this drag entirely.
Actively managed mutual funds also tend to have higher portfolio turnover, which refers to how frequently a fund buys and sells securities. This can lead to sizable year-end distributions because the fund is legally required to pass along realized capital gains to shareholders. If you’re investing outside a tax-sheltered account like a Roth IRA or 401(k), these distributions can hurt your after-tax performance.
Finally, many of today’s top-performing funds are built around U.S. growth and tech stocks, areas that have already had a strong run. You’re not buying into the same undervalued or overlooked opportunities that early investors once found. You’re paying more for companies that have already succeeded and counting on them to keep growing from a higher starting point.
“Dumping money into the winners of the last decade means you’re deliberately buying what is now expensive compared to the rest of the market, which bodes poorly for expected returns,” says Allen Mueller, director of financial planning at investment advisory firm 7 Saturdays Financial.
With that in mind, here’s a look at the top eight Fidelity mutual funds, ranked in ascending order by their trailing 10-year annualized returns as of June 30:
| Fund | Expense ratio | 10-year annualized return as of June 30 |
| Fidelity Nasdaq Composite Index Fund (ticker: FNCMX) | 0.29% | 16.1% |
| Fidelity Growth Discovery Fund (FDSVX) | 0.66% | 16.5% |
| Fidelity Trend Fund (FTRNX) | 0.59% | 17.0% |
| Fidelity OTC Portfolio (FOCPX) | 0.73% | 17.6% |
| Fidelity Blue Chip Growth Fund (FBGRX) | 0.47% | 17.9% |
| Fidelity Select Software and IT Services Portfolio (FSCSX) | 0.62% | 18.0% |
| Fidelity Select Technology Portfolio (FSPTX) | 0.62% | 21.1% |
| Fidelity Select Semiconductors Portfolio (FSELX) | 0.62% | 27.2% |
Fidelity Nasdaq Composite Index Fund (FNCMX)
There are two major Nasdaq benchmark indexes, which can be confusing for new investors. The one most often quoted in headlines is the Nasdaq-100, which tracks the 100 largest non-financial companies listed on the Nasdaq exchange. That index has become the basis for billions in assets under management across exchange-traded funds (ETFs) and mutual funds, as well as in derivatives like options and futures.
But there’s a more diversified counterpart: the Nasdaq Composite index. Unlike the Nasdaq-100, it’s not limited to just the largest names. Instead, it includes over 2,700 Nasdaq-listed stocks across the full market-cap spectrum. FNCMX provides passive exposure to this benchmark. The fund has a low 0.29% expense ratio and just 2% portfolio turnover, making it cheaper and more tax efficient than active funds.
10-year annualized return: 16.1%
Fidelity Growth Discovery Fund (FDSVX)
“Growth stocks are those that are growing or are expected to grow earnings at an above-average rate, for which investors are willing to pay a premium,” says Daniel Dusina, chief investment officer at wealth management firm Blue Chip Partners Inc. “The last 10 years, which consisted of ultra-low interest rates and a relatively stable domestic economy, aligned well for growth stocks.”
FDSVX has outpaced both the Russell 3000 Growth Index and Morningstar’s large growth category over the past decade, thanks in part to concentrated bets. It holds just 145 stocks, with about half of its assets (49.5%) in the top 10 holdings. Nvidia Corp. (NVDA) and Amazon.com Inc. (AMZN) account for 11.9% and 10.9% of the portfolio, respectively. The fund charges a 0.66% expense ratio and has a 58% annual turnover rate.
10-year annualized return: 16.5%
Fidelity Trend Fund (FTRNX)
FTRNX has been around since 1958, but its strategy has evolved over time. In its earlier years, the fund took a classic trend-following approach, aiming to ride momentum in stocks showing strong price appreciation. That strategy has since shifted. Today, FTRNX has a clear growth investing mandate and is benchmarked against the Russell 1000 Growth index and the Morningstar large growth peer category.
Still, some might say the dominant trend over the past decade has been the outperformance of growth stocks, and FTRNX has leaned into that. Its top holdings include the usual big tech names, but it also features a notable outlier: Axon Enterprise Inc. (AXON), which develops law enforcement technology such as body cameras and Tasers. The fund charges a 0.59% expense ratio and has a 64% turnover rate.
10-year annualized return: 17%
Fidelity OTC Portfolio (FOCPX)
FOCPX primarily invests in companies listed on the Nasdaq, along with a select group of over-the-counter (OTC) stocks. These OTC holdings are mostly established foreign blue-chip companies, and not the thinly traded penny stocks typically associated with that segment of the market. The fund is required to invest more than 25% of assets in technology stocks, though it is not limited to either growth or value styles.
Despite that flexibility, FOCPX closely resembles other growth-focused funds like FDSVX in terms of holdings. However, it charges an even higher 0.73% expense ratio and has a similar turnover level, at 55%. Even so, FOCPX has managed to outperform both the Nasdaq Composite index and the Morningstar large growth peer category over the trailing 10-, five- and three-year periods.
10-year annualized return: 17.6%
Fidelity Blue Chip Growth Fund (FBGRX)
FBGRX is a popular choice in many 401(k) plans and has become more cost-effective over time. Its expense ratio has steadily declined and now sits at 0.47%. Lead portfolio manager Sonu Kalra has been at the helm since 2009. Under his leadership, the fund has outperformed both the Russell 1000 Growth index and the Morningstar large growth category over the trailing 10-, five- and three-year periods.
Still, FBGRX isn’t without criticism. Despite holding a relatively broad portfolio of 390 stocks, it has an active share of just 36.7%, according to Morningstar. Active share measures how much a fund’s holdings differ from its benchmark, with higher numbers indicating greater deviation. A figure below 40% is often seen as a sign of “closet indexing,” where a fund mirrors its benchmark closely while charging active fees.
10-year annualized return: 17.9%
Fidelity Select Software and IT Services Portfolio (FSCSX)
“Along with growth stocks outperforming value stocks over the last decade, we also saw a lot of tech sector development that fueled the rise in valuations,” says Anessa Custovic, chief investment officer at Cardinal Retirement Planning Inc. In particular, software providers in enterprise software, cloud computing and cybersecurity were able to maintain ample margins while consistently growing earnings.
FSCSX leaned into this theme with a concentrated portfolio of just 55 holdings. The top 10 stocks make up 60% of the fund, with Microsoft Corp. (MSFT) alone accounting for one quarter of total assets. While FSCSX has outperformed the S&P 500 over the long term, even after accounting for its 0.62% expense ratio, it has consistently lagged the MSCI U.S. IM Software & Services 25/50 Index.
10-year annualized return: 18%
Fidelity Select Technology Portfolio (FSPTX)
“Overall, growth and information technology have come to dominate the U.S. market over the trailing 10-year period,” Dusina says. “Funds with high exposure to tech heavyweights such as Apple, Microsoft and Nvidia were rewarded with market-leading returns.” These three companies are the top holdings in FSPTX, with Nvidia at 21.2%, Apple Inc. (AAPL) at 12.9% and Microsoft at 12.8%.
FSPTX is similar to FSCSX but casts a wider net. While FSCSX focuses strictly on software and IT services, FSPTX includes a broader mix of tech subsectors, such as semiconductors and hardware. It charges the same 0.62% expense ratio. Over the long term, FSPTX has outperformed the S&P 500, but like FSCSX, it has slightly lagged the MSCI U.S. IM Software & Services 25/50 Index.
10-year annualized return: 21.1%
Fidelity Select Semiconductors Portfolio (FSELX)
Since the end of 2022, the artificial intelligence (AI) boom has propelled FSELX to all-time highs. The surge in demand for high-performance chips used in data centers, AI model training and cloud infrastructure has driven strong returns across the semiconductor industry. Investors have increasingly treated these companies as the “picks and shovels” powering the broader AI buildout.
FSELX has an ultra-concentrated portfolio, with Nvidia making up 26% of assets. The next-largest holding, Broadcom Inc. (AVGO), accounts for 14.2%. The fund holds just 55 stocks, and its top 10 positions represent 83.4% of the total portfolio. FSELX has slightly outperformed the MSCI U.S. IMI Semiconductors & Semiconductor Equipment 25/50 Index despite a 0.62% expense ratio.
10-year annualized return: 27.2%
[Read: 6 of the Best AI ETFs to Buy for 2025]
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8 Top-Performing Fidelity Funds for Retirement originally appeared on usnews.com
Update 07/17/25: This story was previously published at an earlier date and has been updated with new information.