Mutual funds are one of the most popular ways to invest in the stock and bond markets, especially as part of employer-sponsored 401(k) plans. They offer diversification and professional management, making them an attractive option for investors of all levels. If you're wary of efforts to game the tumultuous market and looking for a haven to park your investments for the long term, mutual funds and index funds are a solid choice.
Our listing of the best mutual funds sticks to U.S. and international equity funds, plus one allocation fund and one short-term bond fund. These funds have a track record of strong performance over the past five years, making them a great option for long-term investing.
First on our list is the Vanguard Total Stock Market Index Fund (VTSMX), which tracks the performance of the entire U.S. stock market. This fund has a low expense ratio and has consistently outperformed its benchmark index over the past decade. It's a great choice for investors who want broad exposure to the U.S. stock market.
Next is the T. Rowe Price Blue Chip Growth Fund (TRBCX), which invests in large-cap U.S. growth stocks. This fund has a strong long-term track record, with returns that have consistently beaten the S&P 500 index. It's a great choice for investors looking for growth potential in their portfolio.
For investors looking for international exposure, the Fidelity International Capital Appreciation Fund (FIVFX) is a great choice. This fund invests in large-cap stocks from developed and emerging markets outside of the U.S. It has consistently outperformed its benchmark index and has a low expense ratio.
The Vanguard Balanced Index Fund (VBIAX) is an allocation fund that invests in a mix of U.S. stocks and bonds. It's a great choice for investors who want a balanced portfolio with exposure to both asset classes. This fund has a low expense ratio and a strong long-term track record.
For investors looking for a short-term bond fund, the Vanguard Short-Term Investment Grade Fund (VFSTX) is a great choice. This fund invests in investment-grade bonds with maturities of one to five years. It has a low expense ratio and provides a higher yield than many other short-term bond funds.
Other top-performing mutual funds to consider include the Fidelity Contrafund (FCNTX), the T. Rowe Price Equity Income Fund (PRFDX), and the American Funds EuroPacific Growth Fund (AEPGX).
An index fund is an investment fund – either a mutual fund or an exchange-traded fund (ETF) – that is based on a preset basket of stocks, bonds, or other assets. These funds are designed to track the performance of a particular market index, such as the S&P 500. They offer low costs and minimal turnover, making them a popular choice for long-term investors.
Looking for the top mutual funds? These are the best U.S. equity stock funds based on their five-year performance. These funds have consistently outperformed their benchmark indexes and offer investors the potential for long-term growth.
There is never a wrong time to invest in mutual funds for retirement. So, if you're still looking for the best mutual funds, the Zacks Investment Research website offers a wealth of information and analysis on mutual funds in various categories, including large-cap, mid-cap, and small-cap stocks.
Investing in mutual funds has been a popular choice among investors for decades, and Fidelity Investments is one of the largest mutual fund companies in the world. Fidelity offers a wide range of mutual funds, including equity funds, fixed income funds, and asset allocation funds.
In a challenging market, it helps to ignore day-to-day volatility. Instead, focus on building a diversified portfolio of mutual funds that align with your investment goals and risk tolerance. S&P 500 index funds are one of the most popular investment choices in the U.S., thanks to their low costs, minimal turnover rate, and broad exposure to the U.S. stock market.
Overall, mutual funds are a great option for long-term investing. By choosing top-performing funds with low expenses and strong track records, investors can build a diversified portfolio that offers the potential for long-term growth.
