When it comes to saving for retirement, choosing the right 401(k) funds can make all the difference. Over the past decade, these nine funds have consistently delivered impressive returns, helping investors grow their nest eggs efficiently. Let’s explore the best-performing 401(k) funds that you should consider for a robust and diversified retirement portfolio.
1. Fidelity Blue Chip Growth Fund (FBGRX)
- Net Expense Ratio: 0.48%
- 10-Year Average Return: 17.5%
The Fidelity Blue Chip Growth Fund focuses on large, well-established companies with strong growth potential, primarily within the U.S. information technology sector. With top holdings including Nvidia, Microsoft, Amazon, and Apple, this fund offers a solid mix of stability and high growth.
2. Baron Partners Fund (BPTRX)
- Net Expense Ratio: 2.24%
- 10-Year Average Return: 16.7%
Managed by billionaire investor Ron Baron, the Baron Partners Fund is known for its bold investment strategy, holding concentrated positions in high-growth stocks. Notably, nearly 28% of its assets are in Tesla Inc., showcasing its aggressive approach. Despite the speculative nature, it has consistently topped mutual fund performance charts.
3. JPMorgan Large Cap Growth Fund (OLGAX)
- Net Expense Ratio: 0.94%
- 10-Year Average Return: 16.8%
The JPMorgan Large Cap Growth Fund aims to generate long-term capital growth by investing in large-cap companies with strong growth prospects. It leverages a diversified portfolio to mitigate risk while aiming for substantial returns.
4. Fidelity Growth Discovery Fund (FDSVX)
- Net Expense Ratio: 0.67%
- 10-Year Average Return: 15.9%
The Fidelity Growth Discovery Fund targets companies that exhibit above-average growth potential. With a diversified portfolio of growth stocks, this fund has been a strong performer in various market conditions.
5. Calvert Equity Fund (CSIEX)
- Net Expense Ratio: 0.91%
- 10-Year Average Return: 12.9%
Calvert Equity Fund focuses on investing in companies that demonstrate strong environmental, social, and governance (ESG) practices. This makes it an attractive option for socially conscious investors looking for growth opportunities.
6. Fidelity Select Semiconductors Portfolio (FSELX)
- Net Expense Ratio: 0.65%
- 10-Year Average Return: 27.7%
The Fidelity Select Semiconductors Portfolio ranks as one of the best-performing mutual funds of the decade, thanks to its focus on the semiconductor industry. With top holdings like Nvidia Corp. and NXP Semiconductors NV, it offers high growth potential but comes with cyclical risks.
7. Columbia Seligman Global Technology Fund
- Net Expense Ratio: 1.02%
- 10-Year Average Return: 20.6%
Investing in global technology companies of all sizes, the Columbia Seligman Global Technology Fund creates a diversified portfolio aimed at capturing the growth of the tech sector. Top holdings include Broadcom Inc., Lam Research Corp., and Microsoft Corp.
8. Vanguard Information Technology Index Fund (VITAX)
- Net Expense Ratio: 0.1%
- 10-Year Average Return: 20.3%
This passive tech fund (Vanguard Information Technology Index Fund) tracks a U.S. information technology index, benefiting from the overall growth of the tech industry. With over 300 stocks, including giants like Microsoft, Apple, and Nvidia, it offers broad exposure to the sector.
9. Janus Henderson Global Technology and Innovation Fund (JATIX)
- Net Expense Ratio: 0.76%
- 10-Year Average Return: 18.9%
Focusing on companies that create and benefit from technological advances, the Janus Henderson Global Technology and Innovation Fund pairs well-established companies with high-risk, high-reward opportunities. Top holdings include Nvidia, Microsoft, and Meta Platforms Inc.
Investing in the right 401(k) funds is crucial for building a secure retirement. These nine funds have proven their worth over the past decade, delivering impressive returns and offering a mix of stability and growth. Whether you’re looking for high-growth opportunities or socially responsible investments, there’s a fund in this list to suit your needs.
Note: Past performance is not indicative of future results. Always consult with an IFW financial professional before making any investment decisions.
Scott Rosen( Executive VP, Advisor Education )
Scott Rosen is the Executive Vice-President and Research Champion of the IFW. Scott is a 30-year veteran of the financial services industry.
Scott began his career at MetLife as a Financial Representative in North Miami Beach, Florida. Just under four years later Scott was promoted to be the Regional Marketing Director in South Florida. Scott was promoted again two years later to be an Assistant General Manager in the Plantation Florida office. In 2001, Scott Joined Phoenix Life beginning the next phase of his career as a financial product wholesaler covering Miami Florida. With his success, he was recruited and became a Regional Account Manager at Lincoln Financial covering all of Florida as well as parts of Alabama. In 2015, Scott joined MassMutual South Florida as the Brokerage Director until joining The IFW in 2021. Throughout Scott’s career, he has won numerous awards for his success and continued service to producers and their clients.
