As the year draws to an end and investors take stock of their portfolios, Russell Kinnel, Morningstar’s senior principal for ratings, recently reviewed how the 10 biggest actively managed mutual funds have done in 2025.
“It’s good news,” he wrote in a blog post Tuesday.
Each fund outperformed its peers, and all but one had double-digit returns.
Kinnel noted that markets overcame worries about tariffs and an artificial intelligence bubble to post good returns. Overseas funds did even better as foreign equities outperformed U.S. stocks and the dollar fell, making foreign currencies even more valuable.
Large funds were helped by the continued strength of the so-called Magnificent 7 — Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia and Tesla.
“A large asset base forces fund managers to invest in mega-cap stocks whether they love them or not,” Kinnel wrote. “Alphabet (aka Google) and Nvidia had particularly strong returns.”
See the accompanying gallery for how the 10 largest actively managed mutual funds performed in 2025. Year-to-date performance is as of Dec. 22.
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