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Mutual Funds

Mutual Funds links specializes in providing an extensive source of information on Mutual Funds. We work on educating and providing Investors the tools necessary to learn the basics from What are Mutual Funds? to How to Buy Mutual Funds to Which are the Best Mutual Funds. There are currently over 8,000 Mutual Funds to choose from, which can be a daunting task. Most investors either look for the Top Performing Mutual Funds over a 12 month or even 10 year period. Others like to invest in the Mutual Fund Families such as American, Putnam, Fidelity, Franklin-Templeton and Janus, since they are recognizable names and it gives invetors a sort of comfort level. They best way to invest in Mutual Funds is to do your research before and during your investments. Services such as Morningstar provide Mutual Fund Ratings and history of the Funds.



Investing in Mutual Funds

It seems like there is almost an infinite amount of Mutual Funds to invest. You may here see categories of Mutual Funds like Value, Growth, Emerging Markets, No-Load and many more. Most experts will tell you to buy for the long-term and build a portfolio around your risk tolerance. Your age and years until retirement should usually dictate the amount of risk you should accept.

So, the younger you are, the more risk you should take due to more time until retirement. Therefore, your portfolio is normally weighted more towards Stock and Growth Mutual Funds including some Emerging Market and Small Cap Growth Mutual Funds. Oppositely, If you are nearing reitirement, you probably shouldn't take as much risk and build your portfolio around Income Mutual Funds and maybe some Large Cap and Value Mutual Funds. We are obligated to suggest that you consult an Investment Advisor, but we all know more investors are using Online Stock Brokers and buying their own No-Load Mutual Funds.





Types of Mutual Funds

There are many varieties of Mutual Funds to choose from. You can choose from Mutual Funds that invest primarily in a certain sector such as: Healthcare, Precious Metals, Technology, Energy and Socially Responsible Mutual Funds. You can also select from Mutual Funds that invest primarily in certain regions, such as: China Mutual Funds, India Mutual Funds, Emerging Market Funds and European Mutual Funds. You can also invest in less agressive or more aggresive funds from Bond Funds, Large Cap Funds to Small Cap Growth Funds. With so many Mutual Funds to choose from, you should be able to build a well-diversified investment portfolio.




Mutual Funds Performance

With over 8,000 Mutual Funds out there and well-educated professionals managing them, you would certainly expect to see some impressive returns, right? In reality, many Mutual Funds Performance does NOT beat the overall market. Actually, only about a one third beat the overall market. In all fairness, Mutual Fund companies have their own expenses, including marketing costs, that get factored into the final returns. They have to make a profit too. Nevertheless, if you find a good Mutual Funds that has an above average track record for many years, it will most likely show much better results than you could acheive on your own.

Let take a look at the performance history of the leading Mutual Funds for the last 10 years.

Best Performing Mutual Funds Last 10 Years - Annualized Returns:
  1. Wasatch Micro Cap (WMICX): 23.23%
  2. Bridgeway Ultra-Small Company (BRUSX): 22.98
  3. CGM Realty (CGMRX): 22.21
  4. BlackRock Global Resources Inv A (SSGRX): 21.43
  5. Bruce (BRUFX): 20.81


  6. Average of 5,955 funds tracked by Morningstar: 6.90
*Data as of 4/30/2006

This is just a highlight of longer-term performance of Mutual Funds. You can do your own analysis with one of the many Mutual Fund Screeners. A word of coution is to NOT chase the "latest" and "greatest" fund by using the performance over a short duration like 3 - 6 months.
 

 

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