As investors seek professional portfolio management and diversification, mutual funds remain a cornerstone of long-term investment strategies for growth and income. For 2025, I’ve identified five outstanding funds that offer a combination of strong management teams, proven track records and attractive prospects across different investment styles and asset classes.

How These Mutual Fund Picks Were Chosen

My selection process focused on funds with consistent long-term performance, experienced management teams and reasonable expenses. I evaluated risk-adjusted returns, manager tenure, fund strategy consistency and asset growth management. Special consideration was given to funds that have successfully navigated different market cycles while maintaining their investment discipline and demonstrating strong risk management practices.

5 Attractive Mutual Funds To Buy In 2025

Sources: MutualFunds.com, YCharts.

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1. Fidelity Contrafund (FCNTX)

Mutual Fund Overview

Xem thêm : Alger Growth & Income Fund Q3 2024 Commentary (Mutual Fund:AGIZX)

Key Metrics:

• Net Asset Value: $21.93
• Assets Under Management: $155.1 billion
• Category: Large Growth
• Manager Tenure: 32 years
• 10-Year Average Annual Return: 15.8%
• Turnover Ratio: 16%

Led by legendary manager Will Danoff since 1990, Fidelity Contrafund employs a growth-oriented strategy focusing on companies with underappreciated earnings potential. The fund maintains a diversified portfolio of roughly 300 stocks, biased toward large-cap growth companies.

Why Fidelity Contrafund Is A Top Choice

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Fidelity Contrafund’s appeal stems from its exceptional combination of seasoned management and proven stock selection ability. Under Danoff’s leadership, the fund has outperformed its benchmark in 24 of the past 32 years, generating an alpha of 2.9% annually over the S&P 500. The fund’s proprietary research process, supported by Fidelity’s 200-plus analyst team, has consistently identified emerging growth leaders early–including significant positions in Meta and Nvidia before their massive runs. Despite its large asset base, the fund has maintained its performance edge with a sophisticated trading approach that resulted in an implementation shortfall of just 0.15% in 2024. The strategy’s focus on companies with sustainable competitive advantages has led to superior downside protection, capturing only 85% of market declines while participating in 95% of upside moves over the past decade.

2. American Funds Growth Fund of America (AGTHX)

Mutual Fund Overview

Xem thêm : Alger Growth & Income Fund Q3 2024 Commentary (Mutual Fund:AGIZX)

Key Metrics:

• Net Asset Value: $84.55
• Assets Under Management: $288.9 billion
• Category: Large Growth
• Manager System: Multiple Portfolio Counselors
• 10-Year Average Annual Return: 14.2%
• Turnover Ratio: 25%

Growth Fund of America utilizes American Funds’ distinctive multiple portfolio counselor system, with each manager independently running a portion of the fund’s assets. This approach combines diverse investment perspectives while focusing on high-quality growth companies.

Why American Funds Growth Fund Of America Is A Top Choice

Growth Fund of America distinguishes itself through its unique multi-manager system and remarkable consistency. The fund’s team of 12 portfolio counselors, averaging 25 years of experience, has delivered excess returns of 2.1% annually over its benchmark for the past decade. The multiple portfolio counselor approach has resulted in superior risk-adjusted returns, with a Sharpe ratio of 0.92 versus 0.78 for its peer group. The fund’s low expense ratio of 0.62% is impressive given its active management approach and extensive global research capabilities. Portfolio construction excellence is evident in the fund’s sector allocation decisions, which added 175 basis points of excess return in 2024. The fund’s low turnover of 25% demonstrates its long-term investment approach, resulting in tax efficiency with a tax-cost ratio of just 0.45% annually.

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3. T. Rowe Price Small-Cap Value (PRSVX)

Mutual Fund Overview

Xem thêm : Alger Growth & Income Fund Q3 2024 Commentary (Mutual Fund:AGIZX)

Key Metrics:

• Net Asset Value: $61.46
• Assets Under Management: $11.3 billion
• Category: Small Value
• Manager Tenure: 15 years
• 10-Year Average Annual Return: 9.3%
• Turnover Ratio: 28%

This fund focuses on undervalued small-cap companies with strong fundamentals and potential catalysts for value realization. The fund maintains a diversified portfolio of approximately 250 holdings across various sectors.

Why T. Rowe Price Small-Cap Value Is A Top Choice

T. Rowe Price Small-Cap Value excels through its disciplined value approach and strong bottom-up security selection. The fund’s research-intensive process, supported by T. Rowe Price’s 45 small-cap analysts, has generated an alpha of 3.2% annually over its benchmark since current management took over. Portfolio positioning has been particularly strong in identifying value opportunities, with 85% of holdings demonstrating positive earnings surprises in 2024. The fund’s capacity management is exemplary, having soft-closed at $12 billion to maintain investment flexibility in less liquid small-cap stocks. Risk management stands out with a downside capture ratio of 0.82 while still participating in 92% of market upside. The expense ratio of 0.79% is competitive for active small-cap management, especially given the fund’s consistent value-add through security selection and tactical sector positioning.

4. Pimco Income Fund (PONAX)

Mutual Fund Overview

Xem thêm : Alger Growth & Income Fund Q3 2024 Commentary (Mutual Fund:AGIZX)

Key Metrics:

• Net Asset Value: $10.67
• Assets Under Management: $172.3 billion
• Category: Multisector Bond
• Manager Tenure: 16 years
• 30-Day SEC Yield: 5.2%
• 10-Year Average Annual Return: 4.0%

The Pimco income fund employs a flexible approach to fixed-income investing. It seeks to generate consistent income while protecting capital in different market environments. The fund can invest across the entire fixed-income spectrum globally.

Why Pimco Income Fund Is A Top Choice

This fund stands out for its sophisticated income generation and risk management approach. The fund’s dynamic asset allocation process has delivered a remarkable track record, outperforming its benchmark by 175 basis points annually while maintaining lower volatility than peers. The management team’s tactical positioning in 2024 demonstrated exceptional skill, particularly in duration management and sector rotation, adding 220 basis points of excess return. The fund’s risk-adjusted performance is superior, with a Sharpe ratio of 1.15 versus 0.85 for its peer group. Despite its institutional-level expense ratio of 1.23%, the fund’s consistent income generation and total return profile justify the cost. The fund’s sophisticated hedging strategies have provided effective downside protection, limiting drawdowns to 45% of its benchmark during market stress periods.

5. Vanguard Wellington (VWELX)

Mutual Fund Overview

Xem thêm : Alger Growth & Income Fund Q3 2024 Commentary (Mutual Fund:AGIZX)

Key Metrics:

• Net Asset Value: $47.89
• Assets Under Management: $113.1 billion
• Category: Balanced Allocation
• Manager Tenure: Team approach
• 10-Year Average Annual Return: 8.7%
• Turnover Ratio: 39%

As the nation’s oldest balanced fund, Wellington takes a disciplined approach to asset allocation and focuses on high-quality stocks and investment-grade bonds.

Why Vanguard Wellington Is A Top Choice

Vanguard Wellington’s enduring success stems from its disciplined approach and exceptional cost efficiency. The fund’s balanced strategy has delivered remarkable consistency, beating its benchmark in 18 of the past 20 years while maintaining a low correlation to broad market indices. The equity portion’s focus on high-quality dividend growers has resulted in a portfolio with a 15% higher return on equity than the S&P 500. At the same time, the fixed-income allocation’s emphasis on investment-grade corporate bonds has generated 85 basis points of excess yield. The fund’s industry-leading expense ratio of 0.25% enhances its risk-adjusted returns, resulting in a Sharpe ratio of 0.95, top decile in its category. Portfolio construction excellence is evident in strategic asset allocation and security selection, with the fund’s tactical shifts adding 125 basis points of excess return in 2024.

Bottom Line

These five mutual funds offer investors exceptional management talent across investment strategies and asset classes. From Fidelity Contrafund’s growth expertise to PIMCO Income’s fixed-income prowess, each fund brings unique strengths to a diversified portfolio. Their combination of experienced management, proven track records, and reasonable costs makes them compelling choices for investors seeking professional management in 2025.

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Sources: All data in this article is extracted from MutualFunds.com and YCharts.

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