Long-term investing is the foundation of wealth creation, and mutual funds remain one of the most trusted vehicles for building a future-proof portfolio. But with thousands of options available in 2025, how can you choose the best mutual funds for long-term growth?
In this guide, we’ll break down the key strategies and factors you should consider—and highlight top fund providers like American Century Investments that are leading the way.
🧠What Are Mutual Funds (and Why Are They Ideal for Long-Term Investing)?
A mutual fund is a pooled investment vehicle that allows investors to buy into a diversified portfolio of stocks, bonds, or other assets managed by professionals. For long-term investors, mutual funds offer:
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Diversification to reduce risk
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Professional management
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Automatic reinvestment of dividends
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Accessibility, even for beginners
In 2025, mutual funds are still a go-to option for retirement planning, college savings, and wealth accumulation.
📊 Key Factors to Consider When Choosing Mutual Funds
Before you invest, consider these core elements that impact a mutual fund’s long-term performance:
1. Investment Objective
Are you looking for aggressive growth, moderate growth, or income? Choose a fund whose strategy matches your goals.
2. Historical Performance
While past performance isn’t a guarantee of future returns, it provides a snapshot of how the fund navigates different market cycles.
3. Expense Ratio
This is the annual fee as a percentage of your investment. Lower expense ratios mean more of your money stays invested. Look for funds with an expense ratio under 1%.
4. Fund Manager’s Track Record
Experienced managers can make a significant difference in long-term returns. American Century Investments, for instance, is known for its consistent, research-driven fund management approach.
5. Risk Level
Every fund carries risk. Review the fund’s volatility history and holdings to ensure it aligns with your risk tolerance.
💡 One Choice Portfolios: A Smart 2025 Option
American Century Investments’ One Choice Portfolios are gaining attention in 2025 for their simplicity and effectiveness. These target-date mutual funds automatically adjust their asset mix over time, reducing risk as you approach your investment goal—making them ideal for retirement or education planning.
Benefits include:
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Hands-off portfolio management
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Regular rebalancing
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Designed for different time horizons (e.g., One Choice 2030, 2045, etc.)
Whether you’re 25 or 55, there’s a fund tailored to your needs.
👉 Explore this option in more detail in the American Century Investments Guide, where the mutual funds section highlights how One Choice Portfolios are built for long-term success.
📈 Growth vs. Value Funds: What’s Right for You?
In 2025, many investors are weighing growth vs. value strategies:
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Growth Funds invest in companies with strong earnings potential—think tech and innovation.
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Value Funds target undervalued companies with stable fundamentals—ideal during market volatility.
American Century offers a strong lineup in both categories, helping investors maintain balance across market cycles.
✅ Tips for Building a Winning Mutual Fund Portfolio
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Start Early, Stay Consistent – Time in the market beats timing the market.
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Diversify Across Sectors – Don’t rely solely on one industry or asset class.
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Use Automatic Contributions – Dollar-cost averaging helps reduce risk over time.
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Review Annually – Adjust your holdings as your goals and market conditions change.
🔚 Final Thoughts
Choosing the right mutual funds in 2025 is all about aligning your financial goals with smart fund selection. With the right mix of performance, management, and strategy, your portfolio can grow steadily over the long term.
American Century Investments offers a reliable, well-researched approach to mutual fund investing—especially through its diversified One Choice Portfolios. If you’re planning for the future, these funds deserve a spot on your watchlist.
🔗 Start building long-term growth today with trusted options like American Century’s mutual funds.
