Vanguard funds are great for novice investors because of their low costs and diversification across asset classes and regions. That said, the large number of Vanguard funds sometimes makes it hard to decide which one to invest in. If confused, individuals can start by looking at the company’s top-performing funds. While shortlisting their options, one should also consider their risk appetites and check whether the chosen Vanguard funds are safe.

Vanguard Wellesley Income

Vanguard funds like the Wellesley Income fund consist of a balance of two-thirds of bond and one-third of stocks. This, in itself, is a low-risk proposition in case a person is a beginner in investing. However, when investments are made in such funds, which are considered among 10 best vanguard funds, it should be kept in mind that lower the amount of risk, less would be average return in comparison to any kind of stock funds.

Vanguard Star Fund

This is another among best Vanguard funds and the investment is two-thirds in stocks and one-third in bonds. This, in itself, is a medium risk stock fund and can be considered apt for investors who are looking for medium risk Vanguard funds with long-term investment objectives. An investor only needs to make an initial purchase of $1,000 to be a party to this fund.

Target Retirement 2050 Vanguard Fund

Among 10 best Vanguard funds is the target retirement fund which has been created keeping in mind the population that is set to retire by the year 2050. The more is the period of investment, higher is the allocation to stocks and as the target year approaches its end the allocation will shift more towards bonds. The initial purchase of this bond is also $1,000.

Range of Index Funds

Beginner investors can also choose to invest in the following index funds which are considered among 10 best Vanguard funds.

Vanguard Balanced Index

This fund also has a moderate allocation of two-third stock and one-third bonds. This is a medium risk stock of Vanguard funds, which is appropriate for investors who are willing to take a moderate risk and have long-term investment objectives. Since this fund is a blend of bond and stock indexes, the fund is similar to having two different funds in one. The initial purchase of this fund is, however, $3,000.

Vanguard 500 Index

This is the cheapest index fund which provides exposure to a large segment of the stock market in the United States in a single mutual fund. However, 100 percent of fund portfolio is allocated to stock here. The risk factor is, however, higher in this fund and the investor has to make an initial purchase of $3,000.

Vanguard Total Stock Market Index

This can be considered among the biggest mutual fund in the world and can also be considered among the best Vanguard funds. This fund provides the investors with exposure to the complete United States stock market and that too at a low cost. The investor gets exposure to over 3,000 stocks, and these include various kinds of small and mid-cap stocks. The minimum initial purchase in this is $3,000.

Vanguard Total Bond Market Index

This fund is also similar to the Total Stock Market Index fund except for the fact that here the investor gets entire United States bond market in a single fund. This fund should be applied in conditions when the investor is ready to expand the portfolio and make low-cost risk investments. The initial purchase of this fund is also $3,000.

Vanguard Total International Stock Market Index

This fund which is also listed among 10 best Vanguard funds offers coverage of stocks around the globe except for the United States. This is a fund for investment at times when the investor is ready to diversify the portfolio by gaining some foreign stock exposure. This fund also comes with a minimum purchase limit of $3,000.

Small Cap Stock and Sector Funds

Once the portfolio has been built around large-cap funds in the country, international stocks more aggressive funds as small-cap stock funds can be added.

Vanguard Explorer

This fund is known to invest in 600 small-cap stocks and is considered to be a more aggressive option than large-cap stocks. It can translate to higher return in the long run and will always reduce the risk in comparison to small-cap stock funds. An initial investment of $3,000 is required to make an investment in this fund.

Vanguard Health Care

If you intend to invest in a healthcare sector investment fund, the Vanguard Healthcare Care fund could be the best option. However, not more than 5% of the portfolio should be allocated to one sector and same applies to this fund also.

Pick any of these funds and make a worthy investment for a lifetime.