Choosing mutual funds can be overwhelming. There are so many to choose from, and it can be difficult to know which ones are the best performers.
But don’t worry, I’ve got you covered. In this article, I’ll discuss the 10 best performing mutual funds of 2022.
I’ll also tell you what factors to consider when choosing a mutual fund.
Read on for all the information you need to make an informed decision about mutual fund investing.
What are mutual funds?
Mutual funds are investment vehicles that allow investors to pool their money together and invest in a wide range of assets, such as stocks, bonds, real estate, or other financial instruments.
There are many different mutual funds to choose from, so how do you know which ones are the best performers?
One factor to consider when choosing mutual funds is past performance. It’s important to look at each mutual fund’s track record, including the types of investments in which it invests and its rate of return over time.
Other factors to consider include fees and expenses associated with the fund, as well as any special features or benefits that may be attractive to your particular investing portfolio.
What are the pros of mutual funds?
Some of the benefits of mutual fund investing include diversification, professional management, and liquidity.
Diversification: When you invest in mutual funds, you are automatically diversified across a wide range of assets. This means that your risk is spread out, and you are less likely to experience losses if one particular asset class declines in value.
Professional management: Mutual funds are managed by professionals who have extensive knowledge about the markets and how to choose investments that will perform well.
Liquidity: Mutual funds are easy to buy and sell, which gives you the flexibility to cash out your investment if you need to access your money for an emergency or other unexpected expense.
What are the cons of mutual funds?
While mutual funds can be a great investment option, they do come with some downsides. For example, mutual funds are generally not as liquid as other investments like stocks or bonds, and they often have higher fees and expenses compared to other types of investments.
Overall, there are many factors to consider when choosing mutual funds. But if you take the time to research your options and choose wisely, mutual fund investing can be a smart way to grow your wealth over time.
Types of mutual funds
Here are the main types of mutual funds to consider:
- Stock mutual funds: These mutual funds invest in a variety of stocks, which can give you exposure to different sectors and companies.
- Bond mutual funds: These mutual funds invest in a variety of bonds, which can provide you with income and stability.
- Money market mutual funds: These mutual funds invest in short-term debt instruments, which can offer you liquidity and safety.
- Balanced mutual funds: These mutual funds invest in a mix of stocks, bonds, and cash, which can provide you with diversification.
- Index mutual funds: These mutual funds track a specific index, such as the S&P 500, which can give you broad exposure to the stock market.
The 10 best mutual funds of 2022
Here are the 10 best performing mutual funds for 2022. We ranked the performance of these funds based on factors such as historical returns, asset allocation, fees and expenses, and more.
1. Fidelity 500 Index Fund
The Fidelity 500 Index Fund is a mutual fund that tracks the performance of the S&P 500 Index. The fund is managed by Fidelity Investments, one of the largest asset managers in the world. The fund has been one of the best performing mutual funds in recent years, and is currently one of the top mutual funds in terms of assets under management. The fund has a low expense ratio and is available to investors through a variety of brokerages.
2. Vanguard Total Stock Market Index Fund Admiral Shares
The Vanguard Total Stock Market Index Fund Admiral Shares is one of the best performing mutual funds in the market today. The fund provides exposure to the entire U.S. stock market, making it a great choice for investors who want diversification. The fund has a low expense ratio and has outperformed its benchmark, the S&P 500, in 9 out of the past 10 years. Vanguard Total Stock Market Index Fund Admiral Shares is a great choice for investors who are looking for a diversified mutual fund with a track record of success.
3. Vanguard 500 Index Fund Admiral Shares
The Vanguard 500 Index Fund Admiral Shares is one of the best performing mutual funds currently available. It has a solid track record of delivering consistent returns and has outperformed its benchmark, the S&P 500 index, for more than three decades. The fund is also one of the largest mutual funds in the world, with over $500 billion in assets under management. And it is one of the cheapest mutual funds available, with an expense ratio of just 0.04%. For all these reasons, the Vanguard 500 Index Fund Admiral Shares is a great choice for investors looking for a low-cost, high-performing mutual fund.
4. AB Large Cap Growth Fund Class A
AB Large Cap Growth Fund Class A is one of the top mutual funds for investors looking for growth in the stock market. Designed to capture returns from long-term price appreciation, this mutual fund boasts consistent performance that has made it one of the best-performing mutual funds in its category. With over 40 years of history, AB Large Cap Growth Fund Class A has consistently outperformed other mutual funds within the same investment class, delivering strong returns year after year. Whether you’re looking to grow your portfolio or protect your assets from market fluctuations, AB Large Cap Growth Fund Class A is undeniably one of the top mutual funds available today.
5. Janus Henderson Balanced Fund Class T
The Janus Henderson Balanced Fund is one of the best performing mutual funds in the industry. With an impressive track record of consistently delivering excellent returns, this fund has become a top choice for many savvy investors. The balanced investment strategy employed by the fund is key to its success, as it allows it to strike a balance between different asset classes while taking advantage of both long-term growth opportunities and short-term market fluctuations. Whether you are looking for a mutual fund that can offer reliable performance over time or simply want to diversify your portfolio with some top mutual funds, the Janus Henderson Balanced Fund Class T is an excellent option.
6. Guggenheim Core Bond Fund Class P
The Guggenheim Core Bond Fund Class P is one of the best performing mutual funds. The fund’s objective is to provide total return through a combination of capital appreciation and income. The fund invests primarily in a diversified portfolio of high-quality, investment-grade corporate bonds. The fund’s portfolio manager is William H. Gross, who has over 40 years of experience managing bond portfolios. The fund has a low expense ratio of 0.18%, which is significantly lower than the average expense ratio for mutual funds. The fund has a four-star rating from Morningstar and is definitely a top mutual fund pick for 2022.
7. Calvert Core Bond Fund Class A
The Calvert Core Bond Fund Class A (CCBIX) is one of the best performing mutual funds in its category. With a five-year average annual return of nearly 8%, it has outperformed its peer group and the broader bond market over the long term. The fund’s objective is to provide investors with income and capital appreciation by investing in a portfolio of high-quality, fixed-income securities. The fund’s portfolio is diversified across a wide range of sectors, including government, corporate, mortgage-backed, and asset-backed securities. Although the fund has a higher expense ratio than some of its competitors, its strong performance has more than offset these costs. For investors looking for exposure to the bond market, the Calvert Core Bond Fund Class A is an excellent choice.
8. Fidelity Multi-Asset Income Fund
Fidelity Multi-Asset Income Fund is one of the best performing mutual funds. It was created on December 1, 2009 and has since outperformed its peers. The fund’s objective is to provide current income and capital appreciation. It invests in a variety of asset classes including stocks, bonds, and cash equivalents. The fund is managed by Michael A. Lazor and has a expense ratio of 0.75%. As of June 30, 2019, the fund has a total return of 9.92% and a YTD return of 5.57%. The fund’s performance indicates that it is a good choice for investors looking for a mutual fund with a consistent track record of outperforming its peers.
9. Fidelity OTC Portfolio
The Fidelity OTC Portfolio is a mutual fund that invests in stocks of companies that are not listed on a major stock exchange. The fund generally invests in companies with market capitalizations of $2 billion or more. The Fidelity OTC Portfolio is one of the best performing mutual funds in its category, with a five-year return of 12.62%. The fund has a low expense ratio of 0.74%, and it requires a minimum investment of $2,500. The fund is managed by Daniel P. Morse, who has been with Fidelity for over 20 years. In addition to the Fidelity OTC Portfolio, Mr. Morse also manages the Fidelity Nasdaq Composite Index Tracking Stock Fund and the Fidelity Select Technology Fund.
10. T. Rowe Price US Equity Research Fund
The T. Rowe Price US Equity Research Fund is one of the best performing mutual funds in the industry, with a track record of consistently delivering impressive investment returns. With a focus on successful companies that have strong fundamentals and valuations which are attractive relative to their peers, this top mutual fund has achieved exceptional performance year after year. Whether you are looking for capital appreciation or steady growth over time, the T. Rowe Price US Equity Research Fund is an excellent option for investors seeking high-quality mutual funds at an affordable price.
FAQs
How do you select the best performing mutual funds?
There are several factors to consider when choosing mutual funds, including performance metrics such as annual returns, expense ratios, and historical track records. Other important factors include asset class, diversification, manager experience, and investment objectives. To select the best performing mutual funds, you should carefully evaluate each fund’s performance relative to other available options in your portfolio, as well as its fees and track record. Ultimately, the right mutual funds for you will depend on your investment goals and risk tolerance.
What is the average mutual fund return?
Over the long term, the average mutual fund has returned about 9-10% annually. However, it is important to remember that mutual fund returns can vary significantly from year to year, and some funds may outperform or underperform the market in any given year. For this reason, it is important to choose mutual funds that have a history of consistent performance.
What is the best mutual fund to invest in?
There is no single “best” mutual fund to invest in, as there are many different types of mutual funds available that cater to different investment objectives. For example, some mutual funds focus on growth stocks, while others focus on value stocks. Some mutual funds invest in a particular asset class or sector, while others invest in a broad range of assets. Ultimately, the best mutual fund to invest in for your portfolio will depend on your investment goals and risk tolerance. However, some top mutual funds to consider include the Fidelity OTC Portfolio, T. Rowe Price US Equity Research Fund, and Vanguard 500 Index Fund.
What are the risks of mutual fund investing?
Like all investments, mutual funds come with some risks. For example, mutual funds that invest in stocks are subject to market risk, which means that the value of the fund can fluctuate up and down in response to changes in the stock market. However, mutual funds can also offer diversification, which can help to reduce risk. Additionally, mutual funds that invest in bonds are subject to interest rate risk, which means that the value of the fund may decline if interest rates rise. However, mutual funds can offer diversification and potential for capital appreciation, so they can be a valuable addition to any investment portfolio. Ultimately, it is important to understand the risks associated with mutual fund investing in order to make informed decisions about which mutual funds are right for you.
Final thoughts
When it comes to mutual funds, there are a lot of different options to choose from. How do you know which one is the best for you?
In this article, I’ve highlighted some of the best performing mutual funds of 2022, as well as discussed what factors you should consider when making your decision.
Ultimately, the right mutual fund for you will depend on your investment goals and risk tolerance, so be sure to do your research and consult with a financial advisor before making any major investment decisions.
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