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The 7 Best Fidelity Mutual Funds to Buy and Hold in 2025

When it comes to long-term investing, mutual funds remain a popular choice for investors seeking diversified exposure to the stock and bond markets.

Fidelity Investments, one of the largest and most respected asset managers in the world, offers a wide range of mutual funds that are ideal for buy-and-hold strategies.

In this article, we’ll explore the seven best Fidelity mutual funds for long-term investors. These funds have strong track records, low expense ratios, experienced management teams.

And solid diversification — making them excellent candidates for inclusion in a retirement or growth portfolio.

Why Invest in Fidelity Mutual Funds?

Fidelity has built a reputation on offering high-quality investment products with no-load fees (no sales charges), low expense ratios, and exceptional customer service.

Their mutual funds are especially attractive to:

  • Long-term investors
  • Retirement savers (e.g., 401(k) or IRA holders)
  • Investors who prefer professional fund management

With that in mind, let’s dive into our list of the top 7 Fidelity mutual funds to buy and hold.

 1. Fidelity® 500 Index Fund (FXAIX)

Asset Class: U.S. Large Cap Equities
Expense Ratio: 0.015%
AUM (as of 2025): Over $400 billion
YTD Return (2025): ~11.2%

This fund tracks the S&P 500 index , giving investors broad exposure to the 500 largest U.S. companies.

FXAIX is a cornerstone of any long-term portfolio due to its low cost, stability, and consistent performance. It’s also tax-efficient and highly liquid.

Why it’s great: Low fees, market-matching returns, and time-tested resilience.

2. Fidelity® Total Market Index Fund (FSKAX)

Asset Class: U.S. Equities (All Caps)
Expense Ratio: 0.015%
AUM: Over $350 billion
YTD Return (2025): ~10.8%

This fund provides exposure to nearly the entire U.S. stock market , including large-, mid-, and small-cap stocks. It’s an all-in-one solution for investors looking to capture the full breadth of domestic equity growth.

Why it’s great: Comprehensive market coverage, ultra-low costs, and passive indexing strategy.

3. Fidelity® Total Bond Index Fund (FTBFX)

Asset Class: U.S. Investment-Grade Bonds
Expense Ratio: 0.20%
AUM: ~$60 billion
YTD Return (2025): ~3.4%

For balanced portfolios, FTBFX offers diversified exposure to the U.S. bond market, including government, corporate, and mortgage-backed securities. It’s a core holding for income generation and risk mitigation.

Why it’s great: Diversified fixed-income exposure, reliable income stream, and relatively low volatility.

Fidelity® International Index Fund (FSPSX)

Asset Class: International Equities
Expense Ratio: 0.20%
AUM: ~$35 billion
YTD Return (2025): ~9.5%

FSPSX invests in developed and emerging markets outside the U.S., providing geographic diversification. In 2025, international markets have shown signs of recovery, particularly in Europe and parts of Asia.

Why it’s great: Affordable global diversification, experienced management, and growing markets.

Fidelity® Small Cap Index Fund (FSSNX)

Asset Class: U.S. Small Cap Equities
Expense Ratio: 0.20%
AUM: ~$25 billion
YTD Return (2025): ~13.0%

Small-cap stocks tend to outperform over the long run, though they come with more volatility. FSSNX gives investors access to thousands of smaller U.S. companies — a segment often overlooked by larger funds.

Why it’s great: High growth potential, under-the-radar opportunities, and long-term compounding power.

Fidelity® Dividend Growth Fund (FDGFX)

Asset Class: U.S. Equities – Dividend Paying
Expense Ratio: 0.57%
AUM: ~$55 billion
YTD Return (2025): ~10.2%

FDGFX focuses on companies with a history of increasing dividends, which typically indicates financial strength and stable earnings. This fund is ideal for income-oriented investors who also want capital appreciation.

Why it’s great: Dual benefit of income and growth, solid historical performance, and defensive characteristics.

Fidelity® Strategic Real Return Fund (FSRRX)

Asset Class: Multi-Asset / Inflation-Protected
Expense Ratio: 0.40%
AUM: ~$15 billion
YTD Return (2025): ~6.8%

This actively managed fund seeks to protect against inflation while generating real returns. It uses a mix of equities, commodities, TIPS (Treasury Inflation-Protected Securities), and alternative assets.

Why it’s great: Inflation hedge, unique asset allocation, and active risk management.

Final Thoughts: Building a Balanced Portfolio with Fidelity Funds

Combining these mutual funds can help you build a well-diversified, long-term portfolio tailored to your goals:

  • Conservative Investor? Focus on FXAIX, FTBFX, and FSRRX.
  • Moderate Risk Tolerance? Add FDGFX and FSPSX.
  • Aggressive Growth? Include FSSNX and FSKAX for broader equity exposure.

Remember, investing is a long game. Stick with low-cost, broadly diversified funds like these from Fidelity, and avoid chasing short-term trends.

Pro Tips for Investing in Fidelity Mutual Funds

Check Account Minimums: Some funds require a minimum initial investment (often $2,500), but many waive this for IRAs or through automatic investments.

Use Tax-Advantaged Accounts: Maximize contributions to IRAs, 401(k)s, or HSAs to reduce taxable gains.

Reinvest Dividends Automatically: Let compound growth work in your favor.

Review Annually: Stay aligned with your target asset allocation without over-trading.

Bottom Line: Fidelity offers some of the best mutual funds available today for investors who want simplicity, affordability, and strong long-term performance.

Whether you’re just starting or refining your portfolio, the funds listed above are excellent choices for buying and holding.