When planning your investment strategy for 2025, choosing the right mutual funds can make a significant difference in long-term performance and portfolio stability. Fidelity Investments, one of the largest and most trusted asset managers in the United States, offers a wide range of mutual funds that cater to various investor needs—from low-cost index funds to actively managed growth and income options.
This guide breaks down the best Fidelity mutual funds available in 2025, explains how they differ from ETFs, and outlines where these funds can be accessed globally.
ETFs vs. Mutual Funds: What’s the Difference?
Before diving into Fidelity’s offerings, it’s important to understand the distinction between mutual funds and exchange-traded funds (ETFs):
| Feature | Mutual Funds | ETFs (Exchange-Traded Funds) |
|---|---|---|
| Trading | Priced once daily after market close | Traded throughout the day like stocks |
| Minimum Investment | Often $0 at Fidelity | Buy at least one share (price varies) |
| Fees | May include management fees | Typically lower fees, especially for index ETFs |
| Management Style | Active or passive | Mostly passive, some actively managed ETFs |
| Dividend Reinvestment | Automatic | Optional, must be set up manually |
Mutual funds are ideal for investors who prefer automatic reinvestment and a hands-off approach. ETFs offer more flexibility and real-time pricing, which appeals to active traders.
Where Can You Buy Fidelity Mutual Funds?
Fidelity mutual funds are primarily available to U.S. residents through Fidelity.com. . However, Fidelity International provides limited access in select countries:
- Full access: United States
- Self-managed accounts: United Kingdom, Germany, Hong Kong, Japan, Bermuda, Taiwan
- Managed accounts only: Australia, Canada, France, Singapore, Malta, and others
Investors outside these regions may need to use alternative platforms such as ZacksTrade or Firstrade to access U.S.-based Fidelity funds.
Why Choose Fidelity Mutual Funds?
Fidelity has built a strong reputation over the past 75 years for its research-driven investment strategies and investor-friendly policies. Key advantages include:
- Low Expense Ratios: Many Fidelity index funds charge fees as low as 0.015%
- No Minimum Investment: Most funds are accessible with $0 initial investment
- Diverse Fund Selection: Over 300 funds across equities, bonds, sectors, and international markets
- Active Management Expertise: Fidelity’s research team supports some of the most successful actively managed funds in the industry
These features make Fidelity a top choice for both beginner and experienced investors.
Best Fidelity Index Funds for Long-Term Growth
Index funds are popular for their simplicity, low fees, and market-matching returns. Here are three standout options:
- Fidelity 500 Index Fund (FXAIX) Tracks the S&P 500 with an ultra-low expense ratio of 0.015%. Over the past 10 years, it has delivered an annualized return of approximately 12%.
- Fidelity ZERO Total Market Index Fund (FZROX) Offers exposure to the entire U.S. stock market with no expense ratio. Ideal for beginners and long-term investors.
- Fidelity NASDAQ Composite Index Fund (FNCMX) Provides heavy exposure to technology and growth stocks. Its 10-year annualized return is around 12–13%, with an expense ratio of 0.29%.
Index funds now account for over 40% of Fidelity’s assets under management, reflecting their popularity among cost-conscious investors.
Best Fidelity Growth and Sector Funds
For investors seeking higher returns and targeted exposure, Fidelity’s actively managed growth and sector funds offer compelling options:
- Fidelity Contrafund (FCNTX) One of the largest actively managed funds, focusing on growth companies like Amazon, Apple, and Microsoft. Expense ratio: 0.63%. YTD performance in 2025: -4.2%.
- Fidelity Blue Chip Growth Fund (FBGRX) Targets large-cap companies with strong earnings potential. Five-year annualized return: approximately 22.4%.
- Fidelity Select Technology Portfolio (FSPTX) A sector-specific fund heavily weighted in emerging tech and AI. Higher volatility, but strong upside potential.
These funds may outperform in bullish markets but carry more risk than diversified index funds.
Best Fidelity Income and Bond Funds
For investors focused on income and portfolio stability, Fidelity offers several strong fixed-income options:
- Fidelity U.S. Bond Index Fund (FXNAX) Provides broad exposure to the U.S. investment-grade bond market. Expense ratio: 0.025%.
- Fidelity Strategic Income Fund (FADMX) Actively managed and diversified across government bonds, corporate debt, and high-yield bonds. Expense ratio: 0.66%.
- Fidelity Municipal Income Fund (FHIGX) Offers tax-free income, ideal for investors in higher tax brackets. Best suited for U.S. residents.
Bond funds are generally less volatile than equity funds and are well-suited for conservative investors or those nearing retirement.
Common Questions About the Best Fidelity Mutual Funds
Are Fidelity funds good for beginners? Yes. Fidelity’s ZERO index funds are particularly beginner-friendly, with no fees and no minimum investment.
How do Fidelity funds compare to Vanguard? Fidelity offers a broader range of actively managed funds, while Vanguard is best known for its passive index fund lineup.
What is the minimum investment for Fidelity mutual funds? Most Fidelity mutual funds have a $0 minimum, making them highly accessible.
Which Fidelity fund is the safest? Bond funds like FXNAX are considered lower risk compared to equity-based funds.
Final Thoughts
The best Fidelity mutual funds in 2025 span across index, growth, and income categories, offering something for every investor type. Whether you’re looking for low-cost exposure to the S&P 500, aggressive growth through actively managed funds, or stable income from bonds, Fidelity provides a robust lineup to match your financial goals.
If you’re based in the U.S. or one of the supported international markets, you can take full advantage of Fidelity’s offerings. For others, alternative platforms may be necessary to access these top-performing funds.
Ready to build your portfolio with the best Fidelity mutual funds? Start by assessing your risk tolerance, investment horizon, and income needs—and let Fidelity’s diverse fund lineup do the rest.
1 thought on “The Best Fidelity Mutual Funds for a Smart Investor”