Which mutual funds have performed best over the last 5 years?

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Investing in mutual funds is a popular way to grow wealth over time. But with thousands of options available, how do you know which ones have performed the best? If you’re looking for the top-performing mutual funds over the last five years, this guide will help you understand which funds have delivered strong returns, what factors contributed to their success, and how to choose the right ones for your portfolio.

Why Look at 5-Year Performance?

A five-year timeframe is a good measure of a mutual fund’s performance because:

It covers different market cycles (bull and bear markets).
It shows consistency rather than short-term luck.
It helps filter out funds that had one great year but struggled otherwise.

Now, let’s dive into the best-performing mutual funds over the last five years.

Top Performing Mutual Funds (2019-2024)

1. Large-Cap Growth Funds

These funds invest in big, well-established companies with strong growth potential. Some of the best performers include:

Fidelity Blue Chip Growth Fund (FBGRX)
- 5-Year Return: ~18% annually
- Focuses on tech giants like Apple, Microsoft, and Amazon.
- Strong performance due to the tech boom in recent years.
T. Rowe Price Blue Chip Growth Fund (TRBCX)
- 5-Year Return: ~17% annually
- Invests in high-growth sectors like AI, cloud computing, and e-commerce.

2. Technology Sector Funds

Tech stocks have been market leaders, and these funds benefited the most:

Fidelity Select Technology Portfolio (FSPTX)
- 5-Year Return: ~22% annually
- Heavy in semiconductors, software, and big tech.
Vanguard Information Technology Index (VITAX)
- 5-Year Return: ~21% annually
- Tracks the performance of tech stocks in the S&P 500.

3. Small-Cap Growth Funds

Smaller companies can grow faster, and these funds have seen big gains:

T. Rowe Price QM U.S. Small-Cap Growth Equity Fund (PRDSX)
- 5-Year Return: ~15% annually
- Focuses on innovative small companies with high potential.
Wasatch Small Cap Growth Fund (WAAEX)
- 5-Year Return: ~14% annually
- Invests in emerging businesses in healthcare, tech, and consumer sectors.

4. International Growth Funds

Some global funds have outperformed U.S. markets:

Fidelity International Growth Fund (FIGFX)
- 5-Year Return: ~12% annually
- Invests in high-growth international companies like ASML and Samsung.
T. Rowe Price International Discovery Fund (PRIDX)
- 5-Year Return: ~11% annually
- Focuses on small and mid-sized companies outside the U.S.

5. ESG (Environmental, Social, Governance) Funds

Sustainable investing has gained traction, and some ESG funds have done well:

Parnassus Core Equity Fund (PRBLX)
- 5-Year Return: ~13% annually
- Invests in companies with strong ESG practices like Microsoft and NextEra Energy.
TIAA-CREF Social Choice Equity Fund (TICRX)
- 5-Year Return: ~12% annually
- Balances financial returns with social responsibility.

What Made These Funds Perform So Well?

Several factors contributed to the success of these top mutual funds:

Tech Sector Dominance – Companies like Apple, Nvidia, and Meta saw huge growth.
Low-Interest Rates (2020-2022) – Cheap borrowing helped businesses expand.
Post-Pandemic Recovery – Stocks rebounded strongly after 2020’s market crash.
AI and Innovation Boom – Artificial intelligence and cloud computing boosted tech stocks.

However, past performance does not guarantee future results. Markets change, and yesterday’s winners may not stay on top.

How to Choose the Best Mutual Fund for You

Instead of just picking the highest-returning funds, consider these factors:

✅ Your Risk Tolerance – High-growth funds can be volatile.
✅ Expense Ratios – Lower fees mean more of your money grows.
✅ Fund Manager’s Track Record – Consistency matters.
✅ Diversification – Don’t put all your money in one sector.

A balanced approach with index funds (like VTSAX or VFIAX) can also be a smart long-term strategy.

Final Thoughts

The best-performing mutual funds over the last five years were mostly in tech, large-cap growth, and ESG categories. Funds like FBGRX, FSPTX, and PRBLX delivered strong returns, but future performance depends on market trends.

Before investing, research fees, risks, and your own financial goals. A financial advisor can help tailor your choices to your needs.

By understanding which mutual funds have performed best, you can make smarter investment decisions for the next five years and beyond.