Mutual funds are one of the most popular ways to invest in the stock and bond markets, especially as part of employer-sponsored 401(k) plans and self-directed IRAs. Mutual funds allow you to buy a diversified collection of assets in just one fund, often at low cost. Bankrate logo
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Looking to grow your investment portfolio but feeling overwhelmed by the countless mutual fund options? You’re not alone! As we navigate through the financial landscape of late 2025, finding the right mutual funds can feel like searching for a needle in a haystack. I’ve been investing for years, and trust me, I’ve made my share of mistakes along the way.
Today, I’m gonna break down the top 5 mutual funds that have been consistently performing well and deserve your attention. These funds have demonstrated strong returns and offer diverse investment strategies that might align with your financial goals.
Why Mutual Funds Are Worth Your Attention
Before diving into the specific funds, let’s quickly review why mutual funds remain popular investment vehicles:
- Professional management: Fund managers make investment decisions so you don’t have to
- Diversification: Your money is spread across many securities, reducing risk
- Accessibility: You can start investing with relatively small amounts
- Liquidity: Most mutual funds allow you to sell your shares any business day
Now let’s get to the good stuff – the top performers that could potentially boost your investment portfolio!
The Top 5 Mutual Funds to Consider in 2025
1. Franklin Gold and Precious Metals Fund (FGADX)
Current Price $46.04YTD Return +130.46%52-Week Change +10776%
The Franklin Gold and Precious Metals Fund has been absolutely crushing it this year! This fund focuses on companies involved in gold and precious metals exploration, mining, and production.
What makes FGADX stand out
- Exceptional YTD performance of over 130%
- Strong 3-month return of +32.11%
- Exposure to a sector that often performs well during economic uncertainty
- Professional management by Franklin Templeton, a well-established investment firm
The fund’s impressive performance can be attributed to several factors, including increasing gold prices due to global economic uncertainty and inflation concerns. If you’re looking to add some glitter to your portfolio, this could be an excellent option.
However, remember that commodity-focused funds can be volatile. This fund has seen wide price swings, trading between $18.86 and $50.68 over the past 52 weeks.
2. US Global Investors Gold & Precious Metals (USERX)
Current Price: $25.74
YTD Return: +126.19%
52-Week Change: +109.27%
Another gold-focused fund that’s been shining bright! USERX invests in precious metals mining companies globally.
Key highlights:
- Spectacular 126.19% YTD return
- Leading 3-month return at +34.69%
- More than doubled in value over the past year
- Lower price point making it accessible for newer investors
This fund has benefitted from similar market conditions as FGADX, but with slightly different portfolio allocations and management approach. Their strategy of focusing on both established mining companies and promising smaller operations has paid off handsomely.
USERX has a price range of $11.36 to $28.73 over the past 52 weeks, showing both the potential rewards and volatility in this sector.
3. VanEck International Investors Gold Fund (INIIX)
Current Price: $33.42
YTD Return: +126.73%
52-Week Change: +107.97%
Noticing a pattern? Gold and precious metals funds have been dominating the top performers list! INIIX continues this trend with impressive returns.
Standout features:
- Excellent YTD performance of +126.73%
- Strong 3-month return of +30.75%
- Global diversification across international gold mining companies
- VanEck’s specialized expertise in commodity and natural resource investments
The fund managers at VanEck have demonstrated skilled stock selection within the gold mining sector, focusing on companies with strong operational efficiency and growth potential. Their international approach provides exposure to mining operations across various regions, potentially reducing country-specific risks.
Over the past year, INIIX has traded between $14.63 and $36.51, demonstrating significant growth potential despite the inherent volatility.
4. American Century Global Gold (BGEIX)
Current Price: $27.15
YTD Return: +114.59%
52-Week Change: +111.61%
BGEIX continues our theme of gold-focused funds with another stellar performer that’s more than doubled investors’ money over the past year.
Key points:
- Impressive YTD return of +114.59%
- Solid 3-month performance at +25.79%
- 52-week return exceeding 111%
- Management by American Century, a respected investment firm
This fund takes a slightly different approach by focusing on high-quality gold mining companies with strong fundamentals and sustainable operations. The fund managers have shown skill in selecting mining companies that not only benefit from rising gold prices but also demonstrate operational excellence.
The fund has traded between $12.06 and $29.92 over the past 52 weeks.
5. Fidelity Select Semiconductors (FSELX)
Current Price: $46.43
YTD Return: +41.05%
52-Week Change: +31.46%
Finally, breaking away from the gold theme, we have Fidelity’s semiconductor-focused fund. While its returns aren’t as astronomical as the precious metals funds, it represents a crucial sector that’s powering the technological revolution.
What makes FSELX noteworthy:
- Strong YTD return of +41.05%
- Excellent 3-month performance of +19.69%
- Exposure to the booming semiconductor industry driving AI, cloud computing, and other tech advances
- Fidelity’s robust research capabilities and management expertise
This fund invests in companies that design, manufacture, and sell semiconductor chips and related technologies. With the ongoing AI boom and increasing chip demand for everything from smartphones to data centers, this sector continues to show promising growth potential.
FSELX has traded between $22.88 and $47.05 over the past 52 weeks, showing strong upward momentum.
Understanding the Current Mutual Fund Landscape
Looking at our top 5 list, it’s pretty clear that 2025 has been exceptionally favorable for gold and precious metals funds. This isn’t random – several economic factors have contributed to this trend:
- Inflation concerns: Gold is often viewed as a hedge against inflation
- Economic uncertainty: Precious metals typically perform well during times of market volatility
- Supply constraints: Limited new mining operations have affected metal supplies
- Technological demand: Industrial applications for precious metals continue to grow
Meanwhile, semiconductor funds like FSELX benefit from:
- AI revolution: Increasing chip demand for artificial intelligence applications
- Cloud computing growth: Expanding data centers requiring more advanced chips
- Consumer electronics cycles: New product launches driving component demands
- Manufacturing innovations: Technological advancements improving profitability
How to Choose the Right Fund for Your Portfolio
While these top performers are impressive, I gotta be honest – past performance doesn’t guarantee future results. Here’s what you should consider before investing:
1. Align with Your Investment Goals
Are you looking for:
- Long-term growth?
- Income generation?
- Capital preservation?
- Sector-specific exposure?
Different funds serve different purposes. Gold funds might be great for diversification but may not provide steady income.
2. Consider Your Risk Tolerance
The gold funds on our list have delivered amazing returns but have also experienced significant volatility. Could you stomach a 20-30% drop in value if the gold market corrects?
3. Evaluate Expenses
All mutual funds charge management fees, which can eat into your returns over time. Look at the expense ratio to understand how much you’re paying annually.
4. Assess Your Time Horizon
Are you investing for:
- Retirement in 20+ years?
- A down payment in 5 years?
- College tuition in 10 years?
Your time horizon should influence your fund selection.
5. Check Fund Management
Research the fund managers’ experience and track record. Consistent performance across different market conditions is more valuable than a single year of exceptional returns.
How to Invest in These Top Mutual Funds
Ready to take the plunge? Here’s how you can invest in these top performers:
- Through a brokerage account: Most online brokerages offer access to these funds
- Via a retirement account: Consider adding these to your IRA or 401(k) if available
- Directly from fund companies: You can often invest directly with firms like Fidelity or Franklin Templeton
Remember that some funds have minimum investment requirements, typically ranging from $1,000 to $3,000 for initial investments.
A Word of Caution on Sector Concentration
I can’t stress this enough – our top 5 list is heavily concentrated in precious metals, which represents just one sector of the economy. While these funds have performed exceptionally well recently, there’s no guarantee this trend will continue.
Proper diversification across different asset classes and sectors remains crucial for long-term investment success. Consider complementing any gold fund investment with exposure to:
- Broad market index funds
- International equity funds
- Fixed income (bond) funds
- Real estate funds
- Technology or healthcare sector funds
My Personal Take
I’ve been investing for over a decade, and if there’s one thing I’ve learned, it’s that chasing last year’s winners isn’t always the best strategy. That said, I do believe having some exposure to gold and semiconductor sectors makes sense in the current economic climate.
Personally, I’ve allocated about 5-10% of my portfolio to gold-related investments as a hedge against inflation and market volatility. The semiconductor sector also remains compelling due to the ongoing technological revolution and AI boom.
Whatever you decide, make sure it fits within your broader investment strategy and financial goals.
Final Thoughts
The top 5 mutual funds we’ve explored today have delivered exceptional returns, with gold and precious metals funds dominating the list. While past performance doesn’t guarantee future results, understanding why these funds have performed well can help inform your investment decisions.
Remember, the best investment strategy is one that aligns with your personal financial goals, risk tolerance, and time horizon. Consider consulting with a financial advisor before making significant changes to your investment portfolio.
Have you invested in any of these top performers? What’s been your experience? I’d love to hear your thoughts in the comments below!
Happy investing!
How to pick the best mutual funds for your portfolio
Choosing the best mutual fund for you depends a lot on what you need, in particular your risk tolerance and time horizon. But it also depends on what else you already have in your portfolio. Here are a few key questions to consider in finding the best mutual fund for you:
- When do you plan to access the money? The longer your time horizon, the more risk you can take, meaning stock funds could be the more appropriate investment. If you need the money in the next year or two, you may want to reduce your risk with bond or money market funds.
- Can you withstand temporary losses and hold on? If you can stick with your investing plan for the long term, stock funds will likely be a better investment for you.
- Do you have a specific gap in your portfolio? You may need greater balance in your portfolio. Are you heavily allocated toward bond funds and need some stocks to balance out your returns, or vice versa? Are you invested only in U.S.-based investments and not foreign stocks?
It’s important to know your portfolio and financial situation so that you can assess what mutual fund may be best for you. But even when you find a fund type that you like, you’ll also want to assess which funds are better along a few dimensions.
Ask yourself the following questions:
- What is the fund’s longer-term track record? A higher-performing long-term record (over five or 10 years) is better than a lower one. The fund’s long-term record is your best gauge to how well it may perform in the future.
- Has the fund done well only in the last year or two? A fund that has outperformed only recently may eventually revert to its long-term record. Investors often chase hot performance, then end up buying high and almost inevitably selling low.
- What does the fund charge for investing? Is there a sales load? It’s easy to avoid a sales load, but virtually all mutual funds charge an expense ratio to cover the ongoing costs of the fund and generate a profit.
Some funds (such as index funds) invest in literally the same stocks or bonds as other similar funds. So you can find the same “product” for a lower expense ratio by searching around. For example, any fund based on the Standard & Poor’s 500 index will have substantially the same holdings as another, so the real basis for comparison is the fund’s fees. As the old investor saying goes, “Fees are certain but returns are not.” Lightbulb Icon
“Mutual funds are good options for all sorts of investors. Whether you’re looking for instant diversification or something you can ride into your retirement, consider sticking with the low-cost funds that have outperformed over the long term.” – Brian Beers, Bankrate Investing and Wealth Managing Editor
Certain investors prefer exchange-traded funds over mutual funds – here’s what to consider.
Best equity mutual funds
Equity mutual funds provide exposure to a portfolio of publicly traded stocks, and include many categories such as where the stock is listed, the company’s size, whether it offers a dividend and its industry group. Investors can select a narrowly diversified fund that focuses on a single industry or a broadly diversified fund that includes stocks across many or even all industries.
Stock mutual funds are usually more volatile than other types of investments such as bonds, but they’re appropriate for long-term investors looking for high returns. Below are some of the most popular fund sectors and the funds’ historical performance, as of Oct. 31, 2025. Get started:
5 Mutual Funds you must have in your portfolio
FAQ
What are the top 5 performing mutual funds?
- 149.93% ProFunds Precious Metals UltraSector Fd PMPIX.
- 116.18% Midas Discovery MIDSX.
- 111.32% Franklin Gold and Precious Metals Fund FKRCX.
- 105.25% Allspring Precious Metals Fund EKWAX.
- 102.59% VanEck International Investors Gold Fund INIVX.
Which 5 mutual fund is best?
| Scheme Name | Launch Date | 3-Yrs Ret (%) |
|---|---|---|
| Kotak Multicap Fund-Regular Plan-Growth | 03-09-2021 | 22.22 |
| Axis Multicap Fund – Regular Plan – Growth | 05-12-2021 | 21.61 |
| Nippon India Multi Cap Fund-Growth Plan-Growth Option | 25-03-2005 | 21.38 |
| HDFC Multi Cap Fund – Growth Option | 01-12-2021 | 20.52 |
What if I invest $5000 in mutual funds for 5 years?
5 Years: Your investment can grow to approximately Rs. 4.12 lakh. 10 Years: Over 10 years, the same SIP can grow to Rs. 11.61 lakh.
What is the highest return mutual fund?
| ICICI Prudential Infrastructure Fund Direct – Growth | ₹ 216.04 Invest | 27.37% |
|---|---|---|
| ICICI Prudential BHARAT 22 FOF Fund Direct – Growth | ₹ 33.53 Invest | 26.16% |
| SBI PSU Fund Direct – Growth | ₹ 36.82 Invest | 29.78% |
| Quant Infrastructure Fund Direct – Growth | ₹ 42.15 Invest | 18.73% |