Finding high performing mutual funds investments for a high performing portfolio is simple when you have a little research. Great mutual funds are a result of a stock market that has been going up consistently for the past few years, and is posed to continue on the current positive course. Therefore, now may be the time to research quality mutual funds.
1. Definition of High Performing Mutual Funds
There are literally thousands of quality mutual funds to research, the small list below will get you started. First there are a few things you should know. Mutual funds are used for your 401k, regular savings or investing.
You can purchase most high performing mutual funds from an online. Buy from brokers such as Fidelity Investments, Charles Swab, TD Ameritrade.
Or you can go directly to individual mutual fund company websites such as Vanguard Mutual Funds, T. Rowe Price, American Century, Parnassus, Permanent Portfolio and others. These are all low cost mutual funds.
Those I mentioned here happen to be among the largest companies, but there are many others to choose as research candidates. Most of the discount brokers offer free mutual fund research as well as Yahoo Finance, MSN Finance, and Google Finance all under the mutual fund channel.
2. Finding High Performing Mutual Funds
To find high performing mutual funds you must look at cost of the fund, returns, tax Rate, and asset allocation are 4 of the major categories I look at when I research a mutual fund.
There are many more you will find when you read mutual fund reports listed on the financial websites, and in the prospectus.
It is imperative that you know what you are buying before you buy it. Re-Read the prospectus of the mutual fund you are interested in several times prior to purchase decisions.
All of the following mutual funds mentioned are no-load funds. The following facts are current as of March
2011, they were taken from several mutual fund rating companies.
3. Cost Or Expense Ratio of Funds
Cost is most important for high performing mutual funds because the performance of mutual funds go up and down over time as do most investments.
The lower the cost, the more money goes to your investment. If your mutual fund goes way down, a high cost may be challenging. A reasonable cost almost goes unnoticed if the fund performs well over time.
Keep as much of your investment as possible by focusing on low cost mutual funds. If you are a beginner it is good to focus on mutual funds that are listed as low cost and low risk.
Most of these funds do not require a load or upfront cost unless you cancel the fund before 30-90 days. Each fund varies, read the individual fund prospectus.
4. Returns of Mutual Funds
High performing mutual funds have high returns and are calculated after all costs are deducted. A great one year return may be a fluke. I like to look at the longer returns of the mutual fund. After all, an investment is the increase in value of an instrument over time.
I prefer to look at the 5 and 10 year return of mutual funds to get a broader picture. If the 1 and 3 year returns are high also, that may be the sign of a winner.
Bear in mind you must read the recent news and statistics of your mutual fund, because past performance is no guarantee of future performance.
5. Allocation of Mutual Fund Assets
You don’t need a lot of mutual funds if you choose quality, since a mutual fund usually consists of a diverse mix of stocks. There are different types of mutual funds. So if you choose to own some they should be of different asset allocation groups, to avoid overlapping investments.
Some of the different types of asset allocation groups are: Large Growth, Small Growth, Large Value, Short-Term Bond, Mid-Cap Value, Diversified Emerging Markets and many more.
When you go into an online investment area read about each different type of mutual fund available. If you are a beginner it may be a good idea to study the low risk, low cost mutual funds first.
6. Taxes Paid on Mutual Fund Profits
All of the funds listed below have low turnover, and therefore low tax rates. The turnover rate is the rate at which stocks in the fund are bought and sold. If the stocks are kept long term, they will be subject to long term capital gains tax, which is amongst the lowest taxes to be paid.
7. These are current Mutual Funds with Top Standings in the Respective Categories
As of 1/20/2022 – 2 of many Index Mutual Funds
Fidelity 500 Index Fund (S&P 500) FXAIX
Morningstar Rating 5 out of 5
Type: Large Blend
Expenses: Very low-Yearly Fee=.015% per year
No Load up front or backend
Return 1 year: 28.69%
Return 3 year: 26.06%
Return 5 year: 18.46%
Return 10 year: 16.54%
As of 1/20/2022
Fidelity Mid Cap Index Fund – FSMDX
Morningstar Rating 5 out of 5
Type: Mid Cap Blend
Expenses: Very low-Yearly Fee=.025% per year
No Load up front or backend
Return 1 year: 22.56%
Return 3 year: 23.27%
Return 5 year: 15.08%
Return 10 year: 14.89%
These are just a few examples of high performing mutual funds, there are many. You will find the quality mutual funds when you do your research.
This is not a solicitation to buy a mutual fund. These are only mutual fund suggestions for you to research. Read the mutual fund prospectus before you consider purchasing a mutual fund. Most are available online, at each mutual funds website.
These mutual funds were given a top rating by at least 7 different mutual fund research sites.
The More You Know, The More You Grow – Your FinancesMsFinancialSavvy, Lois Center-Shabazz
Lois Center-Shabazz| Money Strategist | Course Delta Agency
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