15 Best Mutual Funds For Investors That Are Looking To ‘Set It And Forget It’
Stock picking isn’t for everyone. That is why a lot of investors put money into ETFs (Exchange-Traded Funds) and mutual funds. With this in mind, we wanted to highlight some of the best mutual funds you can put your money into.
If you’re unfamiliar, mutual funds are financial vehicles where companies of professional money managers pool money and invest in bonds, stocks, securities, etc. The value of mutual funds depends on the performance of said investments. These investments form the fund’s portfolio. Investors buy shares and each share represents the investor’s stake in the fund and its profit.
Fidelity Investments
What is Fidelity Investments?
Fidelity Investments is one of the largest and most diversified investment companies. They serve 30 million individual investors. Fidelity Investments has 10 regional offices and more than 190 Investor Centers across the United States. Their standards include responsibility, integrity, compassion, and expertise in their business.
One of Fidelity Investments’ edges is their varied portfolios. They offer domestic, international, sectors, fixed income, asset allocation, index, and money market. An example of their portfolios is the Fidelity OTC Portfolio (FOCPX).
Fidelity OTC Portfolio?
Fidelity OTC Portfolio invests at least 80% in small and medium-sized companies and others in the technology sector. The fund generates high returns for average expenses.
How much is the minimum initial investment for Fidelity OTC Portfolio?
Fidelity OTC Portfolio requires a minimum initial investment of $2,500 US Dollars.
Fidelity Contrafund
Another example of their portfolios is the Fidelity Contrafund.
What is Fidelity Contrafund?
The Fidelity Contrafund invests in common stocks, growth or value stocks, or those yet to be fully recognized by the public. The portfolio generates average returns for average expenses.
How much is the minimum initial investment for Fidelity Contrafund?
The minimum initial investment for FCNTX is $2,500 US Dollars.
American Funds
What Is American Funds?
American Funds is one of the biggest investment companies in the world with a stake of more than $1.8 trillion. From their start in the 1930s, American Funds is present in 29 offices across America, Asia, and Europe. They believe in their distinctive way of investing, doing fundamental research, and the power of partnerships in the long-term view.
American Funds unique list of mutual funds include growth & income, tax-exempt bond, college, and retirement funds among others. An example of their mutual fund is The Growth Fund of America (AGTHX).
The Growth Fund of America
The Growth Fund of America uses a flexible approach in investing. It seeks significant potential for capital growth in traditional growth stocks and cyclical companies. At least 65% of the portfolio is invested in common stocks.
How much is the minimum initial investment for The Growth Fund of America?
The Growth Fund of America requires a $250 US Dollar minimum initial investment.
American Funds Fundamental Investors Fund (ANCFX)
What is American Funds is the American Funds Fundamental Investors Fund?
The American Funds Fundamental Investors Fund focuses on undervalued and overlooked opportunities. ANCFX invests in companies with underappreciated growth potential in dividends, sales, and earnings but has high-quality products and leading market shares.
How much is the minimum initial investment for American Funds is the American Funds Fundamental Investors Fund?
The minimum initial investment for American Funds is the American Funds Fundamental Investors Fund is $1,000 US Dollars.
Vanguard
What is Vanguard?
Vanguard has 19 offices worldwide and is investor-driven. The company’s investing philosophy include low costs, long-term orientation and focus on goals. Their fund’s list consists of international, local, money-market, balanced, and sector & specialty. An example of their portfolio is the Vanguard 500 Index Fund Investor Shares (VFINX).
Vanguard 500 Index Fund Investor Shares
Vanguard 500 Index Fund Investor Shares is the first index fund for individual investors. It penetrates the U.S. equity market through diversified exposure at a low-cost. VFINX offers exposure to the United States’ 500 largest companies.
How much is the minimum initial investment for Vanguard 500 Index Fund Investor Shares?
Vanguard 500 Index Fund Investor Shares requires a minimum initial investment of $3,000 US Dollars.
Vanguard Total Stock Market Index Fund Investor Shares (VTSMX)
Another fund from Vanguard is Vanguard Total Stock Market Index Fund Investor Shares (VTSMX).
What is Vanguard Total Stock Market Index Fund Investor Shares?
The Vanguard Total Stock Market Index Fund was created in 1992. It provides exposure to the U.S. market (small-, mid-, and large-cap growth and value stocks). It has broad diversification, low costs, and the potential for tax efficiency.
How much is the minimum initial investment for Vanguard Total Stock Market Index Fund Investor Shares?
The minimum initial investment for Vanguard Total Stock Market Index Fund Investor Shares is $3,000 US Dollars.
PGIM Investments
What is PGIM Investments?
PGIM Investments is part of Prudential Financial, Inc. which has been running for over 140 years. PGIM has more than 1 trillion US Dollars in assets spanning offices in 16 different countries. An example of their mutual fund is the PGIM Total Return Bond Fund.
What is the PGIM Total Return Bond Fund?
PGIM Total Return Bond Fund invests in multiple fixed income sectors and seeks total return. 80% of it is invested in bonds.
How much is the minimum initial investment for PGIM Total Return Bond Fund?
The minimum initial investment for PGIM Total Return Bond Fund is $1,000 US Dollars.
PGIM Absolute Return Bond Fund
Another fund of PGIM investments is the PGIM Absolute Return Bond Fund.
What is the PGIM Absolute Return Bond Fund?
PGIM Absolute Return Bond Fund invests in a wide range of fixed income sectors and securities. It seeks positive returns for the long term. 80% of its assets are invested in debt securities or bonds.
How much is the minimum initial investment for PGIM Absolute Return Bond Fund?
There is no minimum initial investment for PGIM Absolute Return Bond Fund.
T. Rowe Price
What is T. Rowe Price?
T. Rowe Price operates in 49 countries with 1.20 trillion US Dollars of assets under management. Their mission is to help their clients around the world achieve their long-term investment goals. An example of T. Rowe Price’s mutual fund is the Communications & Technology Fund.
Communications & Technology Fund
The Communications & Technology Fund seeks long term capital growth. It invests 80% in technology and communications companies both local and international.
What is the minimum initial investment for Communications & Technology Fund?
The minimum initial investment for Communications & Technology Fund is $2,500 US Dollars.
T. Rowe Price is the Blue Chip Growth Fund
Another fund from T. Rowe Price is the Blue Chip Growth Fund.
What is the Blue Chip Growth Fund?
The Blue Chip Growth Fund aims for long-term capital growth with income only a secondary objective. The portfolio invests mainly in common stocks of medium and large-sized blue-chip companies. Companies that are well-known in their fields and sectors and have the potential for above-average growth in capital.
What is the minimum initial investment for Blue Chip Growth Fund?
The minimum initial investment for Blue Chip Growth Fund is $2,500 US Dollars.
BlackRock
What is BlackRock?
BlackRock’s goal is ensuring financial security for its stakeholders in the long run. Apart from this, it is committed to integrating environmental, social and governance (ESG) practices. Such practices are part of their investment processes and in creating positive social impacts. BlackRock also emphasizes community service. The company manages 6.96 trillion US Dollars in assets across the globe. One example of their mutual funds is the Health Science Opportunities Fund.
Health Science Opportunities Fund
The Health Science Opportunities Fund aims to:
- Give access to innovative healthcare equities
- Provide investment expertise enhanced by scientific experience and
- Seek diversified returns with lower volatility.
80% of its assets are invested in health sciences and related industries.
How much is the minimum initial investment for the Health Science Opportunities Fund?
The minimum initial investment for the Health Science Opportunities Fund is $1,000 US Dollars.
BlackRock is the iShares Core S&P 500 ETF
Another fund from BlackRock is the iShares Core S&P 500 ETF.
What is iShares Core S&P 500 ETF?
iShares Core S&P 500 ETF aims to:
- Provide exposure to large, established U.S. companies
- Provide low cost, tax-efficient access to 500 of the largest cap U.S. stocks and
- Use at the core of the portfolio to seek long-term growth.
What is the minimum initial investment for iShares Core S&P 500 ETF?
There is no minimum initial investment for iShares Core S&P 500 ETF.
Wasatch Global Investors
What is Wasatch Global Investors?
Wasatch Global Investors was established in 1975 and is managing 20.8 billion US Dollars in assets. One unique characteristic of this financial company is they are employee-owned. One example of Wasatch Global Investors’ mutual funds is the Wasatch Micro Cap Fund.
Wasatch Micro Cap Fund
The Wasatch Micro Cap Fund emphasizes on capitalizing on the inefficient, alpha-rich segment of the market. It also highlights truly active, fundamental, bottom-up investment approach. It also gives importance to the blend of high growth, core growth, and fallen angel micro-cap stocks.
How much is the minimum initial investment for Wasatch Micro Cap Fund?
The minimum initial investment for Wasatch Micro Cap Fund is $2,000 US Dollars.
Wasatch Core Growth Fund
Another example of Wasatch Global Investors portfolio is the Wasatch Core Growth Fund.
What is the Wasatch Core Growth Fund?
The Wasatch Core Growth Fund emphasizes a fundamental research-driven portfolio of high-quality companies. Its core is the highest-quality stable growth companies. It invests in US companies with less than 5 billion US Dollar market cap.
What is the minimum initial investment for the Wasatch Core Growth Fund?
The minimum initial investment for the Wasatch Core Growth Fund is $2,000 US Dollars.
Charles Schwab
What is Charles Schwab?
Charles Schwab manages $3.25 trillion US Dollars worth of assets. The financial company boasts of $0 standard online equity trades. It also charges $0 online commission ETFs. It practices no-load, no-transaction-fee mutual funds for online trading. An example of Charles Schwab’s mutual funds is the Schwab Health Care Fund.
What is the Schwab Health Care Fund?
The Schwab Health Care Fund invests in the health care sector. It seeks long-term capital growth.
What is the minimum initial investment for the Schwab Health Care Fund?
The minimum initial investment for the Schwab Health Care fund is $1 US Dollar only.
Choosing The Best Mutual Funds
If you want to find the best mutual fund that will fit your needs and goals, then there are some tips that you should keep in mind. Here are some of them.
Identify Your Goals And Risk Tolerance
Before placing your cash in the money market, you need to determine first what your goals are and your corresponding risk tolerance. These things will guide you with your future investment decisions. For example, are you investing so you’ll have enough money to fund your kids’ education or are you trying to save for your retirement in the next few years?
At the same time, you should also consider your risk tolerance when jumping into this endeavor. Are you more comfortable with dramatic swings in your portfolio or are you more conservative when it comes to your finances? Remember, risk and returns are directly proportional so make sure to balance these two properly.
If you need help to determine your goals, risk tolerance and see a snapshot of your current asset allocations, net worth, etc, a lot of online tools exist to aid you in that process. One tool that we recommend is Personal Capital, they will connect you with a proper investment specialist to help you discuss your financial goals.
Keep Expenses And Fees Low
Fees and expenses drag your investment profits down. Therefore, the lower these are, the more the funds will perform better in the long run. As a starter, look for mutual funds with an expense ratio of lower than 1 percent and those with no sales or load charges.
Choose Those With Low Turnovers
Turnovers refer to the trade activity of the fund. You can measure it by checking how often the handlers buy and sell the bonds or the stock. In most cases, these are expressed via a percentage measurement called the Turnover Ratio. For it to be considered to have a low turnover ratio, it has to be lower than 30 percent.
A high turnover ratio means that the manager keeps on buying and selling the securities. This strategy translates into a higher relative trading cost.
Selecting the best mutual fund offering for you might seem like a heavy and daunting task. If you carefully consider these three tips, however, you will most likely be onto the road of success.