The 9 Best Performing Mutual Funds of the 2000s

By Tim Lemke on 31 August 2015 0 comments

If you're looking to supercharge your investment returns, it's often helpful to look at some of the best performing mutual funds of recent years. It's a particularly fun exercise to examine the funds that have performed best since the year 2000.

This list was compiled using historical data on annual average returns from Morningstar and Fidelity. It is heavy on biotechnology and health funds, driven by some of the biggest gainers in the stock market over the last 15 years.

It's worth noting that there are several funds that could be on this list, but are now closed to new investors. There are also other funds that have done exceptionally well in the last 10 years, but did not make the list because of bad performance between 2000 and 2005.

Here's to hoping these funds can give your portfolio a boost. Just remember that past performance does not guarantee future returns.

1. Prudential Jennison Health Sciences Fund Z [PHSZX]

It's hard to complain about an 18% average annual return over the last 15 years. A $10,000 investment at the start of 2000 would be worth more than $130,000 now. Top holdings are Biomarin Pharmaceutical, Shire, and Allergan.

2. Rydex Basic Biotechnology Fund Class A [RYBOX]

Founded in 2004, here's a fund that has ridden the wave of hot biotech stocks. This fund would have netted $57,000 from a $10,000 investment at the start. It boasts a 17% average annual return over the last decade, and a more than 50% return over the last year. Gilead, Amgen, and Celgene are the top holdings in this fund.

3. ProFunds BioTechnology UltraSector Fund Investor Class [BIPIX]

This fund is not for the faint of heart. It has high fees and a high minimum investment ($15,000), and uses leverage to maximize returns. But that risk has paid off for investors with an average annual 9% return since being founded in June of 2000. It's recorded a 21% average annual return in the last decade and a 63% average annual return in the last three years. Its holdings include some of the biggest names in biotech, including Gilead Sciences, Amgen, and Alexion Pharmaceuticals.

4. Fidelity Select Biotechnology [FBIOX]

This fund has been a solid performer for more than a decade, with an average annual return of more than 14% since the start of 2000, and more than 19% since 2005. Investors should be especially pleased with the 64% return in the past year. Anyone who invested $10,000 into this fund back in 2000 would have about $45,000 today.

5. Rydex Dynamic NASDAQ-100 2x Strategy Class A [RYVLX]

This is another fund that should probably come with a bottle of ulcer medication. Investors tough enough to endure a brutal 2008 will have seen this mutual fund rebound nicely. This fund has a 16% average annual return since being founded in 2004, and a 50% annual return since the bottom in early 2009. The goal of this fund is to double the performance of the NASDAQ-100. Top holdings include Apple, Amazon, Google, and Facebook.

6. Fidelity Select Pharmaceuticals Portfolio [FPHAX]

It took a while for investors to make money from this fund, but there were solid gains between 2005 and 2007, and super performance in the last six years. We like a 9.8% annual return since its founding date in 2001, and more than 15% in average annual returns in the last 10 years.

7. Fidelity Select Health Care Portfolio [FSPHX]

Ronald Reagan was in his second year as president when this fund first came into being. It's been a solid performer all its life, and has generated an average annual return of 12% in the last 15 years. Current top holdings include Allergan, Medtronic, and Boston Scientific Corp.

8. Fidelity Select IT Services Portfolio [FBSOX]

This fund was once known as "Business Services and Outsourcing," but now invests about 80% of its holdings in the information technology sector. Whatever the focus, the fund has been good to investors. An average annual return of about 11% makes this one of the best performers of the last 15 years. Top holdings include Visa, Mastercard, and IBM.

9. Janus Global Life Sciences Fund [JAGLX]

Here's a funny thing about this fund: If you bought right at the start of 2000, you'd have been rewarded with a 70% return on your investment within two months. But if you bought in March of that year, you'd have been forced to wait 11 years to see any positive return at all. Patient investors, however will have seen an average annual return of between 11% and 12%, and a 41% average annual return over the last three years.

Are you invested in any of these nine best performing mutual funds of this century?

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