The Top Performing Mutual Funds of the Year
Investors always look for the best performing mutual funds for their investment portfolio. Mutual funds, also known as open-end funds, are a popular investment option as they provide diversification, professional management, and flexibility. They are a pool of money collected from many investors, which is then invested in stocks, bonds, and other assets.
In this article, we will discuss the top performing mutual funds of the year and what makes them stand out.
Vanguard Growth Index Fund Admiral Shares (VIGAX)
The Vanguard Growth Index Fund Admiral Shares is one of the best-performing mutual funds of the year with a one-year return of 37.56%. This fund invests in growth-oriented companies with strong earnings potential. It has a low expense ratio of 0.05% and a minimum investment requirement of $3,000. Some of the top holdings of this fund include Amazon, Facebook, and Alphabet.
Fidelity Contrafund (FCNTX)
The Fidelity Contrafund is another top-performing mutual fund of the year with a one-year return of 36.54%. This fund invests in companies with growth potential and undervalued stocks. Its top holdings include Microsoft, Amazon, and Alphabet. With an expense ratio of 0.86% and a minimum investment requirement of $2,500, this fund provides investors with diversification and flexibility.
T. Rowe Price Blue Chip Growth Fund (TRBCX)
The T. Rowe Price Blue Chip Growth Fund is a growth-oriented fund that invests in large-cap companies such as Facebook, Amazon, and Microsoft. With a one-year return of 34.89%, this fund is one of the top performers of the year. It has a minimum investment requirement of $2,500 and an expense ratio of 0.71%.
JPMorgan Mid Cap Growth Fund (HLIEX)
The JPMorgan Mid Cap Growth Fund invests in growth-oriented mid-cap companies with strong fundamentals. This fund has a one-year return of 40.35%, making it one of the best performers of the year. Its top holdings include Lululemon Athletica, DocuSign, and Square. With an expense ratio of 0.75% and a minimum investment requirement of $1,000, this fund provides investors with exposure to mid-cap companies.
T. Rowe Price Global Technology Fund (PRGTX)
The T. Rowe Price Global Technology Fund invests in companies in the technology sector such as Microsoft, Alphabet, and Apple. With a one-year return of 41.65%, this fund is one of the top performers of the year. It has a minimum investment requirement of $2,500 and an expense ratio of 0.92%.
What Makes These Funds Stand Out?
These mutual funds stand out due to their strong performance, low expenses, and diversification. Whilst past performance doesn't guarantee future performance, these funds have been successful during the past year.
These mutual funds invest in growth-oriented companies that have strong fundamentals and earnings potential. They are managed by professional fund managers who use their expertise to select the best stocks and bonds for the fund's portfolio.
Moreover, these funds provide diversification across different sectors and asset classes. This diversification helps reduce risk and provides investors with exposure to different investment opportunities.
In addition to these benefits, these mutual funds have low expenses. The expense ratio is the fee charged by the fund manager for managing the fund. The lower the expense ratio, the more of the return goes to the investor. These funds have expense ratios ranging from 0.05% to 0.92%, which is lower than the average mutual fund.
The Bottom Line
Investors always look for the best-performing mutual funds for their investment portfolio. These top-performing mutual funds of the year invest in growth-oriented companies, have low expenses, and offer diversification. Whilst past performance doesn't guarantee future performance, these funds have performed well during the past year. These funds can be a valuable addition to an investor's portfolio seeking exposure to growth, diversification and a strong track record of performance.