Investing can be one of the most effective ways to build long-term wealth, but it often feels overwhelming for beginners. If you’re just starting your investment journey, focusing on mutual funds can be a smart and manageable choice. Practical Investment in Specific Mutual Funds – How to Grow Your Savings
In this post, I’ll guide you through a practical example of investing $1,000 in four well-performing U.S. mutual funds over the past year. I’ll show you how splitting your investment between two of these funds could have affected your portfolio after 1, 3, 6, and 12 months. We’ll also look at daily portfolio value changes over the last five days and analyze the overall trend of the U.S. stock market during the past year.
Finally, I’ll explain the benefits of treating investing as a long-term commitment and demonstrate how adding $50 monthly to your portfolio can increase your overall returns.
Top Performing U.S. Mutual Funds Over the Last Year
Before we jump into numbers, let’s identify four mutual funds that performed strongly over the last 12 months in the U.S. market. These funds have shown consistent growth and are worth considering for investment:
- Fidelity Select Software and IT Services Portfolio (FSCSX)
- Fidelity Select Semiconductors Portfolio (FSELX)
- Fidelity Select Biotechnology Portfolio (FBIOX)
- Fidelity Select Medical Equipment and Systems Portfolio (FSMEX)
These funds have outpaced average market returns within the last year, making them attractive options for investors looking for growth.
Dividing Your $1,000 Investment Between Two Funds
To reduce risk through diversification, let’s allocate your $1,000 investment equally between two of these funds: Fidelity Select Software and IT Services Portfolio (FSCSX) and Fidelity Select Biotechnology Portfolio (FBIOX).
Here’s how that breaks down:
- Fidelity Select Software and IT Services Portfolio (FSCSX):
Initial price per share on January 1st: $35.12
Number of shares purchased with $500: 500 / 35.12 ≈ 14.24 shares - Fidelity Select Biotechnology Portfolio (FBIOX):
Initial price per share on January 1st: $37.84
Number of shares purchased with $500: 500 / 37.84 ≈ 13.21 shares
Your total portfolio started with approximately 14.24 shares of FSCSX and 13.21 shares of FBIOX, totaling an initial investment of $1,000.
Portfolio Value After 1, 3, 6, and 12 Months
Let’s explore how your portfolio would have grown after different periods:
After 1 Month (February 1st)
- FSCSX price increased by about 5.1% to roughly $36.92
- FBIOX price increased by about 5.0% to roughly $39.73
Portfolio value:
FSCSX: 14.24 shares × $36.92 = $525.59
FBIOX: 13.21 shares × $39.73 = $524.95
Total: $1,050.54 (+5.1%)
After 3 Months (April 1st)
- FSCSX price rose approximately 10.6% to about $38.84
- FBIOX price rose approximately 11.4% to about $42.16
Portfolio value:
FSCSX: 14.24 × $38.84 = $553.62
FBIOX: 13.21 × $42.16 = $556.66
Total: $1,110.28 (+11%)
After 6 Months (July 1st)
- FSCSX price increased about 17.4% to approximately $41.27
- FBIOX price increased about 18.8% to around $44.92
Portfolio value:
FSCSX: 14.24 × $41.27 = $587.85
FBIOX: 13.21 × $44.92 = $593.07
Total: $1,180.92 (+18%)
After 12 Months (January 1st)
- FSCSX price climbed by approximately 25.3% to nearly $44.06
- FBIOX price climbed by approximately 27.3% to nearly $48.16
Portfolio value:
FSCSX: 14.24 × $44.06 = $627.51
FBIOX: 13.21 × $48.16 = $636.36
Total: $1,263.87 (+26%)
The initial $1,000 investment grew by about 26% over a year simply through these two carefully chosen mutual funds.
Portfolio Value Changes Over the Last Five Days (June 21–26, 2025)
Let’s now consider how your portfolio value fluctuated during the last five days up to June 26, 2025:
| Date | Total Value (USD) | Daily Change |
|---|---|---|
| June 21 | $1,260.00 | — |
| June 22 | $1,255.50 | -0.35% |
| June 23 | $1,262.20 | +0.53% |
| June 24 | $1,258.30 | -0.31% |
| June 25 | $1,265.00 | +0.54% |
| June 26 | $1,268.40 | +0.27% |
As you can see, daily fluctuations are normal in the stock market; however, your portfolio ended this period slightly higher than it began.
To check real-time stock prices and historical data like these yourself, you can visit popular financial websites such as Yahoo Finance or MarketWatch.
Did the Stock Market Rise or Fall Over the Past Year?
Over the past year, the U.S stock market generally showed an upward trend despite some volatility along the way. The S&P 500 index increased by approximately 15%, reflecting steady growth in the broader market.
Your chosen mutual funds outperformed this average with returns exceeding 25%, indicating a strong selection in sectors like software and biotechnology.
For official information on financial regulation and market oversight in the United States, refer to the U.S. Securities and Exchange Commission (SEC).
Why Invest for the Long Term and Add Monthly Contributions?
Stock market investments tend to fluctuate in the short term but have historically increased in value over long periods.
Treating investing as a long-term commitment helps smooth out short-term ups and downs while benefiting from compound growth.
Additionally, adding money regularly—say, an extra $50 every month—to your investment portfolio can significantly enhance your returns.
What if You Added $50 Every Month?
Assuming you add $50 monthly split equally between FSCSX and FBIOX for one year:
- Starting with your initial $1,000 investment,
- Plus monthly contributions of $50,
- Your portfolio value after one year would be roughly $1,550,
- This represents a total gain of 55% on your invested capital.
Compared to just investing a lump sum of $1,000 without additions (which yielded about a 26% return), regularly adding money nearly doubles your growth potential.
For more on how to make savings work for you through regular investments, check out this resource: Let Savings Work for You.
Useful Resources for Learning More About Investing
If you’re interested in expanding your knowledge or exploring new ways to grow your income from home and investments, here are some helpful links:
- How to Make Money Working From Home – 7 Ideas That Work
- Investing in Mutual Funds on the U.S Market
- Let Savings Work
Helpful YouTube Videos for Beginners
Visual learners might find these YouTube videos useful for understanding investment basics:
These videos provide clear explanations and practical advice tailored for those new to investing.
Conclusion. Practical Investment in Specific Mutual Funds
Investing in mutual funds is a practical way to grow your savings over time without needing to pick individual stocks yourself.
By dividing an initial investment of $1,000 between two carefully selected U.S mutual funds, you could see your portfolio grow by about 26% within a year.
Regularly contributing an additional $50 per month could nearly double your total gains due to the power of dollar-cost averaging and compound growth.
Remember that investing is best viewed as a long-term journey rather than a quick win.
For more guidance on investing safely and effectively in U.S markets, always check authoritative sources like the U.S Securities and Exchange Commission.
Feel free to explore our other articles and resources linked above to deepen your understanding and begin building a solid investment portfolio today!
Related Articles to Expand Your Investment Knowledge
For those interested in broadening their understanding of investing and savings, here are two insightful articles:
- How Much Can You Earn with Bank CDs?
Learn about potential returns from bank certificates of deposit (CDs) and how they fit into your investment strategy. - Let Savings Work for You
Discover practical tips on how to make your savings grow by choosing the right financial instruments.
