How to Find Best Performing Mutual Funds?

Posted by Grace under Investing on December 18, 2015

Want to know how to find the best performing mutual funds? A reader asked a question about mutual funds investing. David C. from Pennsylvania wants to know the best performing mutual funds. Is it good to invest in mutual funds or should I invest my money directly in stocks through brokerage online?

David is a 23-year old single guy working as a salesman in Pennsylvania. According to his email message, he wants to know if it’s good to invest in mutual funds. If he will invest money in mutual funds, what are the best performing types of mutual funds?


Answer: In investing money, you don’t have to guess. You should follow a proven investment strategy to ensure that your money will grow. Investing in mutual funds is good. But, you still need to know which type of mutual funds you should invest in. There are different types of mutual funds namely equity fund, index fund, balance fund, bond fund, etc.

The Best Performing Mutual Funds

Are equity funds the best performing mutual fund type? It is because these funds are invested in the stock market, when the stock market did not perform well, your funds will not perform well, too. If the stock market crash, your investment funds in mutual funds will be in worst situation. It is a high risk type of mutual fund. The fund manager will carefully choose the best company stocks to invest in. Most young investors prefer equity fund because they can afford to take high risk.

Therefore David C. a 23 year old guy should choose to invest equity fund because he is still young. If David C. will buy his own stocks without a fund manager (meaning he will not invest in mutual fund equity type), he will gain more profits.

Maybe you asked, how can I know the best mutual fund company? How can I know the performance of a equity fund of a specific mutual fund company?

Answer: When choosing a mutual fund company, you need to take time to research and read some reviews and feedback from their previous investors or clients. You can find reviews on the internet by simply typing on Google or other major search engines “mutual fund company + fund type + review”.

How to Search the Best Performing Mutual Fund

When knowing the best performing mutual funds, you can directly go to , CNN Money, Bloomberg.Com, MorningStar or visit the official website of each companies that offers the fund (type of funds).
You need to know the code of the fund/s and find out their historical NAVPS (net asset per value per share) price. You can start by typing the code of the funds.

If the code of the fund is ABCXYZ, type or search ABCXYZ Performance in 2015. You can also search the fund performance weekly, per month, quarterly, per year or every 3 years.

best performing mutual funds

Image Courtesy: on CNN Money Screenshot

A Conclusion in Knowing the Best Performing Mutual Funds?

Mutual fund investing is one great way to diversify your investments. In equity type, the fund manager will carefully select the best stocks to buy so that the funds will perform well.

Even though you are investing in mutual funds, you also need to consider asset allocation (how your assets or investments should be distributed). David is a 23 year old guy, a perfect age to invest in high risk types of investments like equity type of mutual funds. If David turned into 35, he should have some investments in a balanced fund (a combination of stocks and bonds). When he retire at work, more percentage of his investments should be in low risks types. To have a clue how does asset allocation work, simply subtract your age to 100. If you are 70 year old now, that means 30% of your assets should invest in high risks types of investment s while the other 70% should invest in low risk types of investments.

Best Performing Mutual Funds and the Company

Knowing the best performing mutual funds is the best way to choose the mutual fund company. As a reminder, you should not only rely to the best performing mutual funds, you should consider the services by the company. So choose both, best performing mutual fund and best mutual fund company. Otherwise, you will end in investing frustration because of low quality service by some companies.

If you choose only the good company but their fund is not performing well, it’s just the same story. Choose which company and type of funds that can help you achieve your financial goal. Good luck to your search. Have a successful mutual funds investing experience.

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