Of course, there's a wide range of mutual funds to choose from when looking to invest in 2023. Using the Zacks Mutual Fund Rank, we've found three mutual funds that would be great additions to any long-term investor's portfolio. They are the Shelton Equity Income Fund (EQTKX), BNY Mellon Global Real Return Fund (DRRCX), and Cullen High Yield Fund (CHYFX). All three of these funds offer a high dividend yield and are well-diversified.
The Shelton Equity Income Fund is a large-cap fund that invests in stocks of companies with strong dividend yields. The fund has a five-star rating from Zacks and a relatively low expense ratio of 0.81%. This fund is a great choice for investors looking for income and capital appreciation.
The BNY Mellon Global Real Return Fund is an international fund that invests in stocks of companies that have strong dividend yields and high quality. The fund has a four-star rating from Zacks and an expense ratio of 1.11%. This fund is a great choice for investors looking for diversification and income.
The Cullen High Yield Fund is a mid-cap fund that invests in stocks of companies with strong dividend yields. The fund has a four-star rating from Zacks and an expense ratio of 0.95%. This fund is a great choice for investors looking for income and capital appreciation.
Conversely, retail investors are more likely to put money into passive funds (46%), followed by international investments (38%) and actively managed funds (16%). The trend shows that investors are becoming more comfortable with passive investing, which is likely to continue in 2023.
There is a consensus that the equity market is going to be range bound in 2023. The market will scale new highs only after there are clear cues of economic recovery, better corporate earnings, and ample liquidity.
The current market conditions are encouraging investors to look for stocks that pay out high dividend yields. This is driving the demand for dividend-paying mutual funds. These funds are a great way to get exposure to a diversified portfolio of stocks with high dividend yields.
Mutual fund investors should also consider investing in tax-saving ELSS (Equity Linked Savings Scheme) funds. These funds offer tax benefits as well as the potential for capital appreciation. Tax Saving ELSS Mutual Funds List (March 2023) includes the following funds: Aditya Birla Sun Life Tax Relief 96, Axis Long Term Equity Fund, DSP Tax Saver Fund, ICICI Prudential Long Term Equity Fund and many more.
Mutual funds also offer the flexibility to switch from growth to dividend-paying funds and vice versa, depending on your financial goals. Dikshit Mittal, Fund Manager & Senior Equity Research Analyst at LIC Mutual Fund Asset Management Ltd., suggests that investors should identify their investment goals and risk appetite before investing in mutual funds.
There are several types of mutual funds available to invest in, such as growth stocks, value stocks, dividend stocks, ETFs, stock mutual funds, target date funds, real estate, and savings bonds.
When selecting a mutual fund, it is important to consider the fund's track record, fees, and performance. You should also look at the fund manager's experience and expertise.
Before investing in a mutual fund, investors should ask themselves “Am I investing in the right mutual fund?”. It is important to do your research and assess the fund's performance and fees. You should also take into account your own risk appetite and investment goals.
Finally, investors should consider diversifying their portfolio to spread the risk across different asset classes. This will help protect your investments from market volatility.
Investing in mutual funds can be a great way to generate income and capital appreciation. With the right research and guidance, investors can find the best funds to meet their financial goals.
Extract Anonymous Image Description: A chart showing the performance of different asset classes.