The Five Best Mutual Funds
04/24/08 Categories: Stock Investing and
Investments
Mutual funds are a great investment to
add to a retirement portfolio. If you find a good manager or a good
fund, they will grow your retirement pool from a small amount to a
whopping amount. I have reviewed many mutual funds, and it is true,
many of them do not perform any better than the S&P 500 index.
I believe I can find you a few exceptional funds that exceed the
returns of the S&P by a large percentage.
The key to these is to invest in these funds, put more money in them as time goes by, and you will watch a fortune grow. Before you do decide to invest in a mutual fund, make sure you have the means to do so. Make sure your debt is done with, which is what I talked about in Get Personal Finances In Order, and then you can go on your way to making a bundle for retirement.
The List of Mutual Funds is not in any particular order:
Top 5 Mutual Funds
1. Blackrock Latin America Fund (MDLTX)
2. CGM Trust Focus Fund (CGMFX)
3. Fidelity Advisors Utilities Fund (FUGAX)
4. John Hancock Large Cap Equity Fund (TAGRX)
5. T. Rowe Price Value Fund (TRVLX)
1. One mutual fund that I have owned is the BlackRock Latin America Fund (MDLTX). This fund has exceptional returns, much of which is coming from booming Brazil. William Landers, the manager since 2002 has been able to produce annualized returns of about 50% for the past 5 years. That is almost unheard of for a mutual fund. Landers follows the macroeconomic conditions of the countries he invests in. That provides an extra bit of protection from bubbles in different economies.
2. Another mutual fund with rather high returns is the CGM Trust Focus Fund (CGMFX). This fund is managed by Ken Heebner and he has produced an annualized 5 year return of 38.5%. That is another outstanding return. Since his management of the fund began in 1997, he has focused on mid-cap growth stocks in the U.S. This fund is a no-load mutual fund with a .99% expense ratio, so they don't take a percentage of what you put in the fund or what you take out. A .99% expense ratio is low enough that it won't hurt your returns at all. CGMFX also has a five star rating by popular mutual fund analyst Morningstar.com.
3. I found that Fidelity has quite a line-up of good-return mutual funds. The Fidelity Advisors Utilities Fund (FUGAX) has had a more than 20% average annual return for the past five years by investing in public utility stocks. It yields a 1.55% dividend each year, which is a nice bonus to 20% returns. Utilities seem to be almost always a good bet for either constant growth or dividends, so I don't think this fund could ever be in trouble.
4. The John Hancock Large Cap Equity Fund (TAGRX) is an impressive diversified portfolio with mostly large cap stocks. It has seen a 20.29% average annualized return for 5 years, and it is team managed. That creates more evaluation in each pick for the fund. Teamwork works. John Hancock also provides a number of life cycle retirement funds; they are funds that are aimed to provide you with the capital you will need when you retire in 2010, 2020, 2025, etc. They have many retirement years, however, I think they go in blocks of 5 years.
5. John D. Lineham manages the T. Rowe Price Value Fund (TRVLX). The 5 year annualized return is 13.8%, and it has produced a 12.4% return annually since 1994. That is impressive. Value investing reminds me of the Tortoise and the Hare story; slow and steady wins the race. I am a big fan of value investing, and it can do great things for your retirement. So, if you want a fund that you know will perform well over time, it's Lineham's value fund.
The key to these is to invest in these funds, put more money in them as time goes by, and you will watch a fortune grow. Before you do decide to invest in a mutual fund, make sure you have the means to do so. Make sure your debt is done with, which is what I talked about in Get Personal Finances In Order, and then you can go on your way to making a bundle for retirement.
The List of Mutual Funds is not in any particular order:
Top 5 Mutual Funds
1. Blackrock Latin America Fund (MDLTX)
2. CGM Trust Focus Fund (CGMFX)
3. Fidelity Advisors Utilities Fund (FUGAX)
4. John Hancock Large Cap Equity Fund (TAGRX)
5. T. Rowe Price Value Fund (TRVLX)
1. One mutual fund that I have owned is the BlackRock Latin America Fund (MDLTX). This fund has exceptional returns, much of which is coming from booming Brazil. William Landers, the manager since 2002 has been able to produce annualized returns of about 50% for the past 5 years. That is almost unheard of for a mutual fund. Landers follows the macroeconomic conditions of the countries he invests in. That provides an extra bit of protection from bubbles in different economies.
2. Another mutual fund with rather high returns is the CGM Trust Focus Fund (CGMFX). This fund is managed by Ken Heebner and he has produced an annualized 5 year return of 38.5%. That is another outstanding return. Since his management of the fund began in 1997, he has focused on mid-cap growth stocks in the U.S. This fund is a no-load mutual fund with a .99% expense ratio, so they don't take a percentage of what you put in the fund or what you take out. A .99% expense ratio is low enough that it won't hurt your returns at all. CGMFX also has a five star rating by popular mutual fund analyst Morningstar.com.
3. I found that Fidelity has quite a line-up of good-return mutual funds. The Fidelity Advisors Utilities Fund (FUGAX) has had a more than 20% average annual return for the past five years by investing in public utility stocks. It yields a 1.55% dividend each year, which is a nice bonus to 20% returns. Utilities seem to be almost always a good bet for either constant growth or dividends, so I don't think this fund could ever be in trouble.
4. The John Hancock Large Cap Equity Fund (TAGRX) is an impressive diversified portfolio with mostly large cap stocks. It has seen a 20.29% average annualized return for 5 years, and it is team managed. That creates more evaluation in each pick for the fund. Teamwork works. John Hancock also provides a number of life cycle retirement funds; they are funds that are aimed to provide you with the capital you will need when you retire in 2010, 2020, 2025, etc. They have many retirement years, however, I think they go in blocks of 5 years.
5. John D. Lineham manages the T. Rowe Price Value Fund (TRVLX). The 5 year annualized return is 13.8%, and it has produced a 12.4% return annually since 1994. That is impressive. Value investing reminds me of the Tortoise and the Hare story; slow and steady wins the race. I am a big fan of value investing, and it can do great things for your retirement. So, if you want a fund that you know will perform well over time, it's Lineham's value fund.
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