Best Performing Mutual Funds – Intro
Mutual funds have long been an effective way for both new and sophisticated investors to invest in a wide range of companies and assets across the globe, and across different sectors.
With so many available mutual funds to invest in, it can be a challenge to select the best performing mutual funds to buy.
In considering which mutual fund to buy, it is essential that you consider one that is right for you based on your risk tolerance, available funds, and investment objective.
In order to remove the sometimes overwhelming experience that comes with selecting a mutual fund to invest in, we have compiled a top ten list of the best performing mutual fund investments based on overall expenses, performance, and management.
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List of the Top Best Performing Mutual Funds of the Year
- Fidelity Select Electronics Portfolio
- Fidelity Select Health Care Portfolio
- Matthews Asia – India Fund
- Prudential Jennison Utility Fund
- Tocqueville Gold Fund
- Virtus Real Estate Securities
What do Mutual Fund Investors Generally Consider? (Key Selection Criteria)
There are numerous factors that investors take into consideration when selecting top performing mutual funds to invest in.
Primary selection criteria are normally based on the following key variables:
Factors to Consider | Explanation |
| Expense Ratio | Although most investors look at the initial investment fee, the expense ratio that is charged can play an important role in the overall long term return. |
| Turnover | Another important factor in selecting a mutual fund to invest in revolves around the rate of turnover within the fund. This ratio measures the length of time that a fund holds on to securities it purchases. Because costs are incurred with each new purchase or sale of the underlying security, having a mutual fund with a high turnover ratio can increase the overall cost of investing in the fund. The lower the turnover ratio, the better the mutual fund’s long-term performance. |
| Consistency in Returns | A lot of investors look to invest in a mutual fund with the expectation that the fund will outperform the market as a whole. As a consideration for your selection approach, consistency in returns can speak volumes regarding how the fund may perform in years to come. It is important to note that past performance does not guarantee future performance; however, historical returns can reveal insight into the fund manager’s strategy and expertise in the field. |
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Comparison Ranking of the Top Performing Mutual Funds
Below is a high-level comparison of this year’s best performing funds, followed by an overview of the various funds.
# | Mutual Fund | Investment Category | Expense Ratio (Cost) | Year-to-Date Performance |
1 | Matthews India Funds (MINDX) | India Equity | 1.13% | 51.54% |
2 | Tocqueville Gold Fund (TGLDX) | Precious Metals | 1.34% | 30.36% |
3 | Fidelity Select Electronics Portfolio (FSELX) | Technology Mid Cap | 0.79% | 26.95% |
4 | Fidelity Select Health Care Portfolio (FSPHX) | Health Care | 0.76% | 22.84% |
5 | Prudential Jennison Utility Fund (PRUAX) | Mixed Allocation | 0.85% | 21.35% |
6 | Virtus Real Estate Securities (PHRAX) | Real Estate | 1.40% | 20.67% |
Please note that the data and figures presented in this article are based on 2014 datasets.
Top Performing Mutual Funds – Brief Overview
1. Matthews India Fund (MINDX)
For investors seeking a regionally specific mutual fund and a vehicle for investing in the fast growing Asian market, the Matthews India Fund provides an easy way to invest in India’s booming equity market.
The fund’s objective is to provide investors with long-term capital appreciation through active investment of at least 80% of the fund’s assets in companies based in India.
Most companies that comprise this portfolio of equity are mid to large cap and offer preferred and common stock.
Matthews India Fund is a no-load fund and has provided its shareholders with consistent upward performance over the course of the last decade. The fund’s snapshot is included here, providing insight into overall historical performance and more pertinent information.
2. Tocqueville Gold Fund (TGLDX)
This fund’s objective focuses on long-term capital appreciation through the buying and selling of precious metals.
Fund managers of Tocqueville Gold Fund invest at least 65% of the total assets held in the fund in gold.
They also invest in stocks of global companies that are actively engaged in or invested in the mining and processing of gold.
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Tocqueville is a no-load fund, meaning there is no upfront sales charge assessed to new investments, and it has experienced an impressive consistent return since its inception.
3. Fidelity Select Electronics Portfolio (FSELX)
Fidelity is well-known for its proprietary funds available to a wide range of investors, and its Select Electronics Portfolio lives up to its upstanding reputation for performance and overall management.
The fund’s objective is to provide investors with capital appreciation through the purchase and holding of common stocks, specifically with companies engaged in the design, manufacture, and sale of electronic components.
Additionally, the fund may purchase equity positions in companies involved in producing and distributing electronic equipment, instruments, and systems vendors.
The Fidelity Select Electronics Portfolio is a no load mutual fund with a lower than average expense ratio, making it an attractive buy for investors looking to diversify with an industry-specific fund.
4. Fidelity Select Health Care Portfolio (FSPHX)
The Fidelity Select Health Care Portfolio offers investors the opportunity to diversify their overall portfolio holdings by adding sector specific equity positions.
The fund’s objective is capital appreciation by way of investing at least 80% of the fund’s total assets in companies engaged in the design, manufacture or sale of products or services used in connection with health care and medicine.
The Fidelity Select Health Care Portfolio Fund is a no-load fund and has had the highest year-to-date return out of the top ten funds listed here.
5. Prudential Jennison Utility Fund (PRUAX)
Another impressive player in the utilities sector is Prudential Jennison Utility Fund, offering investors access to capital appreciation as well as current income through the purchase of utility company equity purchases.
The fund is required to invest at least 80% of its total assets in equity investment-grade debt securities of utility companies.
It also has the liberty of investing up to 50% of those assets in foreign markets.
Prudential Jennison Utility Fund is a load mutual fund that assesses an upfront charge of 5.50% on initial and subsequent investments.
6. Virtus Real Estate Securities (PHRAX)
The addition of real estate as a necessary asset class for today’s investors has paved the way for numerous mutual fund companies to create a fund for this specific diversification method.
Virtus Real Estate Securities provides investors the ability to invest in larger real estate securities and REITs with the potential for capital appreciation over time.
Virtus Real Estate Securities Fund is a load mutual fund, charging the industry standard of 5.75% on initial and subsequent investments. The fund’s snapshot is presented here, highlighting performance and ranking information.
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Conclusion
Mutual funds offer vast diversification across industries, companies and sectors, and depending on the fund that you select, can sometimes outperform the overall market.
When considering the best mutual funds to invest in, it is essential that you consider:
- Total expenses the fund carries
- Expense ratios
- Sales loads
- Historical returns of funds
- The rate of turnover
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