Top 5 Mutual Funds

Despite the rise of ETFs and other new types of investments, mutual funds remain a popular long-term investment option for all types of investors. An important aspect for investors to keep in mind is to diversify their holdings. I will give the top 5 mutual funds, one from a different investment category so you can get a well-rounded portfolio.

I will take Money Magazine’s top mutual fund from five different categories to create this portfolio.

Large Cap
Vanguard Windsor II (VWNFX)
It combines the best 3-year performance numbers of all the Money Magazine’s top large cap mutual funds with a low expense ration of 0.34%.

Mid Cap
Vanguard Mid Cap Index (VIMSX)
This is an index fund that outstrips most professional managed mid cap funds while having a miniscule 0.22% expense ratio

Small Cap
Vanguard Small Cap Index (NAESX)
Another index fund proves its worth with a 17.6% annualized 3-year return with a small expense ration of 0.23%.

Specialty
T. Rowe Price New Era (PRNEX)
This fund focuses on a blend of growth and value large cap natural resource companies. It has agrnered almost 33% annualized over the past 3 years and has a nice low expense ratio of 0.67%.

Foreign
Vanguard Emerging Markets Stock (VEIEX)
Foreign mutual funds have been hot lately, but few have hotter than VEIEX. 37.4% annualized return for the past three years with an unbelievably low 0.41% expense ratio.

Written by Nagel on July 7th, 2007 with no comments.
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