5 Best Performing AI Mutual Funds in 2025

In a market driven by innovation and data, the best performing AI mutual funds in 2025 have outpaced traditional benchmarks by focusing heavily on technology infrastructure, semiconductors, and enterprise AI software. This isn’t about guessing trends—it’s about recognizing repeatable patterns and capitalizing on sectors where explosive growth meets real revenue. 

Check out my list of top AI penny stocks these mutual funds aren’t buying!

If you’ve studied how tech momentum can spike during earnings seasons, you already understand why these funds are worth watching.

Top AI Mutual Funds in 2025 (YTD Performance as of Q3)

Ticker	Fund Name	YTD Return	Expense Ratio
FSPTX	Fidelity Select Technology Portfolio	13.44%	0.69%
PRGTX	T. Rowe Price Global Technology Fund	16.40%	0.92%
FKDNX	Franklin DynaTech Fund	13.67%	0.79%
SLMCX	Columbia Seligman Communications & Info	15.55%	1.18%
GITAX	Goldman Sachs Technology Opportunities	11.93%	1.17%

These aren’t tickers that I’m necessarily buying…

These are mutual funds that I’m watching.

I don’t just trade these equities randomly. I’ve developed a system for optimal entries and exits…

The best part? It uses AI!

XGPT is the AI tool my team and I have built to spot high-odds setups — faster, smarter, and more efficiently than any human can. You don’t have to be a math genius or some tech wizard. XGPT analyzes patterns, price action, and data the way my top students do… only it does it 1,000x faster. 

Whether you like it or not, AI is part of modern trading. Other traders are already using it, shouldn’t you?

Here are the top AI mutual funds on my list:

1. Fidelity Select Technology Portfolio (FSPTX)

FSPTX is a high-conviction tech fund with nearly 98% of its portfolio in technology stocks and over 25% in Nvidia alone. That kind of concentrated exposure to core artificial intelligence players, especially in semiconductors and data center infrastructure, is what gives this fund its edge in the current cycle. It’s not trying to be everything to everyone—it’s designed for outsized returns when tech is running.

In my trading and teaching experience, students who succeed long-term are those who learn to focus. FSPTX embodies that focus, not just by overweighting AI but by maintaining disciplined exposure to enterprise software giants like Microsoft, ServiceNow, and Cisco Systems. The fund’s 13.44% YTD performance and 17.48% five-year average return show the upside of this strategy when timed right. With high beta and no bond exposure, it’s not for the risk-averse—but if you’re bullish on AI-led market cycles, FSPTX offers targeted potential.

2. T. Rowe Price Global Technology Fund (PRGTX)

PRGTX delivers top-tier AI exposure with an international angle and broad sector reach, including semiconductors, software systems, and digital infrastructure. Its 16.40% YTD return reflects the fund’s tight alignment with companies driving global AI innovation—names like Nvidia, AMD, and ASML. While it’s a bit more diversified across global markets, the top 9 holdings still make up over 60% of total assets.

One principle I teach traders is that market exposure needs to match your trading thesis. If you’re aiming for AI-focused growth, a fund like PRGTX gives you exposure to both US tech leaders and emerging European and Asian semiconductor companies. Its higher expense ratio (0.92%) is offset by consistent outperformance in recent years. For traders looking to allocate capital to AI trends without going all-in on one sector or market, PRGTX offers strong balance and proven results.

3. Franklin DynaTech Fund (FKDNX)

FKDNX combines AI innovation with broader growth exposure by investing in companies leading digital transformation across industries. Nvidia, Microsoft, and Alphabet lead the portfolio, but what sets FKDNX apart is its allocation to platforms like Amazon, Meta, and Mastercard—firms using AI to enhance commerce, communications, and financial modeling. That sector spread boosts its relevance beyond just semiconductors.

Through years of analyzing earnings catalysts and sector rotations, I’ve seen how funds like FKDNX can benefit from second-order effects of AI. It’s not just the chipmakers—it’s also the companies using AI to gain operational and market advantage. With a 13.67% YTD return and a low turnover rate, FKDNX leans into innovation while minimizing excessive churn. Traders who want exposure to AI-driven growth without sacrificing diversification can look to this fund as a flexible vehicle for portfolio allocation.

4. Columbia Seligman Communications & Information Fund (SLMCX)

SLMCX is a high-risk, high-reward technology fund with heavy bets on advanced chipmakers, AI systems developers, and cloud infrastructure firms. Nvidia, Broadcom, and Microsoft top the holdings, but it’s names like Bloom Energy and Lam Research that give this fund a unique AI infrastructure angle. With 70% of assets in tech and over 13% in industrials and comms, it’s positioned to capture AI’s impact across networks and hardware.

In my 20+ years of trading and teaching, I’ve learned that edge comes from spotting unconventional setups. SLMCX represents that kind of edge—its performance is strong, with 15.55% YTD gains and a multi-year record of outperforming when AI and semis lead. It’s more volatile than the others, with a beta of 1.34, so it’s not a fund to chase blindly. But if you understand how to time momentum in sectors like AI, it offers sharp upside potential.

5. Goldman Sachs Technology Opportunities Fund (GITAX)

GITAX targets AI-powered companies across sectors, from core software and semiconductors to e-commerce and media. Nvidia, Meta, and Amazon anchor the portfolio, and the fund rotates into high-demand names with strong cash flow and data-driven business models. It’s built to benefit from long-term technology demand, but the management actively shifts positions based on sector performance trends.

Traders I work with are always reminded that trend is only part of the trade—timing and positioning matter just as much. GITAX may be the most balanced of these funds in terms of cross-sector holdings, and its 11.93% YTD return reflects this broader exposure. While it doesn’t have the raw upside of more concentrated funds, its international allocation and adaptive strategy give it staying power, especially for traders looking to scale into positions over time.

* Past performance isn’t indicative of future results.

AI Mutual Funds Historical and Recent Performance

AI-focused mutual funds have delivered strong performance in 2025, but the strength didn’t start this year. Over the past five years, several of these funds have consistently beaten category averages, particularly during periods when semiconductors and AI chipmakers like Nvidia surged following data center and infrastructure demand spikes. YTD returns range from 11.93% to 16.40%, while 3-year and 5-year annualized returns often surpass broader market benchmarks.

I’ve taught thousands of students how to use historical analysis to inform trades, not predict them. When you study AI mutual fund performance through that lens, you’ll notice that their outperformance is closely tied to earnings from companies like Microsoft, Broadcom, and Alphabet. As AI demand grows in industries like finance, healthcare, and retail, these funds capture broader tech cycles—not just short-term moves. The data shows consistent alpha when AI adoption increases.

Year-to-Date Returns of AI-Focused Funds

The best-performing AI mutual funds so far in 2025 have gained between 11% and 16%, outpacing the broader tech fund category average. PRGTX leads the pack with 16.40%, followed closely by SLMCX at 15.55% and FSPTX at 13.44%. These returns reflect not just smart stock selection, but strong earnings seasons from core holdings like Nvidia, Microsoft, and Advanced Micro Devices.

In trading, I teach that momentum follows real earnings—not just hype. These funds have benefited from that exact pattern, with semiconductor strength and rising capital expenditures on AI infrastructure driving price action. While nothing is guaranteed, traders should study the underlying catalysts behind these funds’ performance to better understand what’s pushing growth.

3-Year and 5-Year Annualized Performance

On a 3-year basis, funds like PRGTX and SLMCX have returned over 25% annually, driven by the AI boom and semiconductor tailwinds. FSPTX and FKDNX also hold up well, with consistent gains above category averages. While not every year has been a winner, the long-term performance suggests that disciplined exposure to AI and tech innovation pays off over time.

Many traders focus on the daily chart and miss the bigger cycles. I emphasize to my students that recognizing 3-5 year sector rotations is how you build lasting edge. The historical data on these AI mutual funds confirms that performance tends to accelerate in phases tied to new product releases, AI chip rollouts, and enterprise software spending.

Comparison with S&P 500 and Nasdaq

Compared to the S&P 500 and Nasdaq, the top AI mutual funds have generally outperformed over 3- and 5-year timeframes. While the Nasdaq is tech-heavy, it doesn’t offer the focused exposure these funds provide to high-growth companies at the center of AI demand. Mutual funds like PRGTX and SLMCX give more targeted gains by actively managing allocations toward top AI names.

Trading isn’t about following indexes—it’s about finding edges. AI mutual funds have outpaced major indices because they ride waves of innovation earlier. That timing edge, when combined with solid research and analysis, can outperform passive approaches, especially during rapid growth cycles like the current AI push.

inflation reports that move rate expectations. Trade what’s in front of you.

In sectors like AI where momentum shifts fast, your platform isn’t just a tool—it’s your edge.

When it comes to trading platforms, StocksToTrade is first on my list. It’s a powerful day and swing trading platform with real-time data, dynamic charting, and a top-tier news scanner. I helped to design it, which means it has all the trading indicators, news sources, and stock screening capabilities that traders like me look for in a platform.

Grab your 14-day StocksToTrade trial today—it’s only $7!

Selection Criteria for AI Mutual Funds

When evaluating AI mutual funds, it’s important to look beyond headline performance and dig into the structure of each fund—what companies they hold, how they manage risk, and how they respond to market news. Funds with consistent exposure to high-growth sectors like artificial intelligence, semiconductors, and cloud software tend to show stronger long-term performance, especially when those companies are backed by solid earnings and real-world application. Recent shifts in business models and product cycles—often revealed in earnings reports or sector updates—can change a fund’s direction quickly, so staying informed through reliable financial news is key.

Exposure to Core AI Innovators (Nvidia, Microsoft, Alphabet)

Top-performing AI mutual funds prioritize significant allocations to leading AI innovators. Nvidia alone often represents 12–25% of a fund’s holdings, with Microsoft, Alphabet, and Apple not far behind. These companies drive revenue from AI chips, enterprise tools, and software systems used across multiple industries.

When I teach students to break down fund holdings, I tell them to look for concentration in companies with earnings momentum and real products. That’s what you see in these funds—high exposure to the companies pushing AI forward with hardware, software, and infrastructure.

Diversification Across AI-Enabled Industries

The best AI mutual funds aren’t just buying chip stocks—they’re allocating across industries that integrate AI into products and services. Healthcare, financial services, communications, and industrial automation are just a few sectors represented. This diversification protects against volatility in any single company or vertical.

It’s the same reason I never rely on one pattern or setup. Good traders spread their exposure intelligently. These funds reflect that thinking by investing in businesses that use AI to improve logistics, reduce costs, or enhance customer insights.

Long-Term vs. Short-Term Growth Strategies

Some AI funds trade frequently, shifting exposure to ride quarterly earnings. Others hold longer-term positions in foundational companies that drive steady compound growth. Funds like FKDNX and PRGTX lean toward long-term plays, while GITAX and SLMCX may rotate faster based on sector strength.

As a trader, I emphasize clarity in your approach. If you’re looking for short-term momentum, you want faster rotation. If you want a more stable trend-following allocation, funds with lower turnover rates give that option. Both strategies have a place—it depends on your goals and timing skills.

Risks and Challenges with AI Mutual Funds

AI mutual funds come with real risks that traders and investors should weigh. These include extreme price swings in technology stocks, high valuations, and potential impacts from regulation or geopolitics. These risks are amplified during earnings seasons or when sentiment shifts quickly.

Volatility in AI and Tech Stocks

AI stocks can move 10–20% in a single session based on guidance or product announcements. That kind of volatility means mutual funds holding these stocks are subject to large drawdowns. Funds like FSPTX and SLMCX, with concentrated tech exposure, are especially sensitive.

Potential Overvaluation in High-Growth Companies

Valuation risk is real. Many AI stocks trade at 30–40x forward earnings or more. If growth slows or rates rise, these companies are at higher risk of correction—taking the funds with them. Traders need to stay alert, especially during overextended rallies.

Impact of Regulation and Geopolitical Tensions

AI is increasingly under scrutiny from regulators. Data use, algorithm fairness, and export controls all impact companies like Nvidia and Microsoft. Trade tensions with China and chip export bans can also hit fund performance hard.

Why Should You Consider AI Mutual Funds as a Future Growth Opportunity?

The Global Growth of AI Across Sectors

AI is being adopted across every major industry. Healthcare, finance, logistics, and manufacturing are using machine learning for diagnostics, modeling, and automation. This broad base of demand drives revenue and creates long-term tailwinds for mutual funds with diversified AI holdings.

Generative AI as a Catalyst for Growth

Tools like large language models and AI chips are changing how businesses operate. These innovations drive new product categories and boost productivity, which in turn drives earnings. Funds that hold Nvidia, Microsoft, and Alphabet are positioned to benefit from this cycle of reinvestment and growth.

International Diversification and Global AI Adoption

AI isn’t just an American story. Companies in Europe, Asia, and emerging markets are innovating fast. Funds like PRGTX and GITAX benefit from international exposure, reducing single-country risk and improving resilience in volatile cycles.

Key Takeaways

• AI mutual funds with heavy exposure to Nvidia, Microsoft, and Alphabet are leading performance in 2025.
• PRGTX, SLMCX, and FSPTX show how focused strategies can outperform broad tech indices.
• Risks include valuation corrections, volatility, and regulation, especially in high-growth tech.
• Diversified sector exposure and global holdings increase long-term potential in AI mutual funds.

This is a market tailor-made for traders who are prepared. AI stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

If you want to know what I’m looking for—check out my free webinar here!

Frequently Asked Questions

What Role Do Data Centers Play in the Growth Potential of AI Investments?

Data centers are the backbone of AI infrastructure, enabling real-time processing of large data sets and supporting cloud-based AI services. Mutual funds with exposure to companies building or operating advanced data centers often benefit from this demand. This connection boosts growth potential in AI-focused investments tied to infrastructure and systems.

Should Investors Rely on Advisors or Experts When Making AI Fund Investment Decisions?

While personal research is important, many investors consult advisors or follow expert opinions when evaluating mutual funds tied to emerging tech like AI. These professionals can help assess securities within a portfolio and weigh risk based on your financial goals. Solid advice helps traders avoid emotional decisions and align positions with long-term strategies.

How Do Fees and Liquidity Compare Between AI Mutual Funds and Index Funds?

AI mutual funds usually have higher fees due to active management, while index funds are generally cheaper but less focused on innovation sectors. Liquidity also varies—mutual funds typically settle once per day, while index-based ETFs can be traded intraday. For active traders, this difference in liquidity and costs should factor into strategy.

Do AI-Focused Mutual Funds Ever Hold Bonds or Use Loans to Manage Risk?

Most AI mutual funds are equity-focused and rarely invest in bonds or use loans, though some may use short-term credit lines for liquidity. These funds concentrate on stocks with high innovation exposure, not fixed-income securities. Traders should read fund documents closely to understand structure, risk, and the impact on prices during volatility.