In the year 2022, many mutual fund investors were looking for ways to increase their returns while staying within their risk profile. This article looks at the top-performing mutual funds to invest in in 2022, from large-cap funds to emerging markets ETFs. We'll also take a look at the strategies used by the top fund managers, and their favorite stocks to watch in the coming year.
One of the best-performing mutual funds in the past three years has been the Bridgeway Small Cap Value Fund, with an annualized return of 23.6%. As of September 2022, BRSVX had 133 issues in its portfolio, with 2.2% of its total assets invest in cash equivalents. The fund has a Zacks Mutual Fund Rank of #2, meaning it is well ranked by analysts in the industry.
Given the price and time consolidation in the stock market in 2022, many mutual funds may have had subdued returns. However, some of the best-performing mutual funds in India this year were Nippon India Large Cap Fund and HDFC Top 100. These large-cap funds have a combined AUM (assets under management) of over $13 billion and have clocked returns of over 10% since the start of the year.
For investors looking to add global exposure to their portfolio, several foreign asset management companies in India have also had a successful year. In November 2022, HSBC Mutual Fund announced its takeover of L&T Mutual Fund, which has resulted in a growth of 15-222% in its AUM.
For investors looking for alternative invest, there are several mutual funds and ETFs available. The AXS Alternative Value Fund (COGVX), for example, closed out 2022 with a Zacks Mutual Fund Rank of #1. This fund has a 10-year live track record and has returned an impressive 11.3% in the past year.
In Canada, ETFs also had a successful year, with a total value of $314 billion in invest at the end of 2022. Some of the top-performing ETFs in the region were the iShares S&P/TSX 60 Index Fund (XIU) and the BMO S&P/TSX Capped Composite Index ETF (ZCN).
Finally, Insider spoke with the top fund managers to hear about their strategies and favorite stocks to watch in the coming year. 2022 was a year when simply achieving a positive return wasn’t enough, and many fund managers had to focus on mitigating risk while still achieving returns. Some of the top stocks to watch in 2022 include Microsoft, Apple, Amazon, and Alphabet.
