10 Best Low-Risk Index Funds to Buy Now

4. Fidelity 500 Index Fund (MUTF:FXAIX)

Expense Ratio: 0.015%

5-Year annualized Return as of July 29: 16.43%

Fidelity 500 Index Fund (MUTF:FXAIX) is one of the best low-risk index funds to buy now. It is an index fund that tries to replicate the performance of the common stocks traded in the U.S. It invests 80% of its assets in common stocks listed in the S&P 500.

Therefore, it is an ideal low-risk index fund due to its diversified portfolio spanning various sectors. While technology stocks account for 32.91% of the portfolio, it also offers exposure to Consumer Cyclical stocks at 10.83% and Financial Services stocks that account for 13.93% of the portfolio. Healthcare stocks account for 9.62% of the index fund holdings.

Some of the hedge fund’s significant holdings include Microsoft, Nvidia, Apple, Amazon, and Meta Platforms. Additionally, the Fidelity 500 Index Fund (MUTF:FXAIX) comes with a low expense ratio of 0.015%, which allows investors to generate optimal returns. Over the past five years, it has generated annualized returns of 16.20%.