One of the world’s richest men has long stated that choosing mutual funds to invest in can increase your wealth. A big part of why mutual funds are recommended is they allow you to easily invest in the stock market in a diversified way.
While there are a lot of good things that can be said about mutual funds, it’s still important to do your own research before investing. The main reason is that not all mutual funds are created equal.
Whether a fund takes a higher than average fee or doesn’t have a track record that’s up to par, you don’t want to miss out on the best opportunities available.
To help you pick wisely, we’ve put together a list of the 10 best mutual funds to invest in this year:
1. T. Rowe Price Blue Chip Growth Fund
This fund boats one-year returns of just over 28 percent. It has over $56 billion in total assets invested across a total of 124 different holdings.
Larry Puglia is the manager of this fund. As a Blue Chip fund, investments are focused on mid and large-cap stocks.
The expense ratio for this mutual fund is 0.70. Because the fund is focused on growth, it does come with a slightly higher risk profile.
2. Vanguard PrimeCap Fund
The one-year returns for Vanguard’s PrimeCap Fund are 20.88 percent. With the ticker symbol VPMCX, this fund manages more than $65 billion in assets.
The core goal of PrimeCap is long-term capital appreciation. The fund carries a very appealing expense ratio of 0.39.
Vanguard’s founder, Jack Bogle, is known as an innovative pioneer in the mutual funds industry. Instead of distributing profits, the company redistributes them to shareholders in the form of lower fees.
3. T. Rowe Price Institutional Large Cap Core
$3.8 billion is a huge amount of money. But when compared to the $65 billion of the Blue Cap Growth Fund, it suddenly seems much smaller.
However, the reason why the Institutional Large Cap Core is still one of the best performing mutual funds is that it posted one-year returns of 28.11 percent. The fund’s expense ratio comes in on the lower side at 0.57.
4. Fidelity Blue Chip Growth Fund
You can definitely increase your net worth by investing in individual growth stocks. The downside is that if one takes a hit, it can drag down your whole portfolio.
Fidelity’s Blue Chip Growth Fund solves this challenge by spreading investments over a total of 434 different holdings.
With assets of over $25 billion, this fund posted one-year returns of 24.34 percent. The minimum initial purchase to invest is $2,500.
5. TIAA-CREF Enhanced Large Cap Growth Index
A minimum of 80 percent of the assets of this fund is invested in large-cap stocks with the best potential for long-term growth. This fund currently has $2.85 billion under management.
One attractive feature of this fund is its low expense ratio of 0.33. It also has impressive one-year returns of 21.49 percent.
6. PrimeCap Odyssey Growth Fund
At 28.13 percent, PrimeCap’s fund has one of the best one-year return rates of any fund on this list. While its expense ratio is on the higher end at 0.67, that’s still in line with the industry rates of other funds like T. Rowe Price.
This fund has been in existence since the end of 2004. The current $13.47 billion in assets it holds are spread across more than 140 total investments.
7. Vanguard PrimeCap Core Fund
With its ticker symbol of VPCCX, the one-year returns for this fund are 14.63 percent. The five-year return sits at a slightly higher annualized rate of 18.34 percent.
It has a lower than average expense ratio of 0.46, and a total of $10.74 assets under management. This fund focuses on investments in companies with market caps of at least $10 billion.
8. Franklin DynaTech Fund
As one of the 10 top-performing mutual funds, this is an interesting and dynamic option to consider. It has $5.72 billion in assets. Although it has a higher expense ratio of 0.89, it evens out with a very strong one-year return rate of 27.55 percent.
What makes this fund especially interesting is that its management team focuses on finding innovative companies. Instead of focusing on a single industry, the fund’s investments are spread across tech, healthcare, and several other sectors.
9. Goldman Sachs Large Cap Growth Insights Fund
The second to last of the top growth stock mutual funds is managed by Goldman Sachs. The one-year returns for this fund are 21.45 percent. It has just over $2 billion in assets and carries an expense ratio of 0.93.
While this fund carries a risk factor that’s classified as above average, it has a solid track record with an average return of 10.92% percent over the last 10 years.
10. Brown Advisory Flexible Equity Fund
The last fund to consider adding to your portfolio has one-year returns of 20.23 percent. With $466 million in assets, the Brown Advisory fund is the smallest on the list.
But what makes it a compelling option is that besides investing in domestic medium and large-cap companies, the fund allocates up to 15 percent of assets to foreign investments. This provides a way to get some exposure to emerging markets.
Next Steps after Learning Which Mutual Funds to Invest in
Investing your money in the right mutual funds is a proven way to increase your net worth. But before you can start investing, you need to have money that’s available to put towards the recommended mutual funds to invest in.
If you currently don’t have any money left over each month, it’s likely because you’re dealing with debt. Even though debt can seem like an impossible mountain to climb, there are ways to eliminate it.
To help you get started, we’ve put together a number of the best free online resources for how to get out of debt.