Popular mutual fund picks for 2017
The economy is more volatile and investors need to be cautious. There are bound to be under-performers and over-performers. The following are promising mutual funds that you can invest in this year.
Vanguard 500 Index Fund: A broad index fund, this has a low expense ratio of 0.16 and requires a minimum investment of $3000.
Fidelity Nasdaq Composite Index Fund: Also a broad index fund with an expense ratio of 0.29, you need to have a minimum initial investment of $2500.
Vanguard HealthCare Fund: A sectoral fund with an expense ratio of 0.36, the minimum investment required is $3000. With the healthcare sector receiving a boost after presidential victory, this is one fund to watch this year. About 15% of the fund’s exposure is in biotech stocks, with the rest in healthcare equipment, tech, and managed healthcare services.
Fidelity Select Banking Fund: With an expense ratio of 0.79 and a minimum initial investment of $2500, this fund is a definite gainer. Financial stocks have become more popular post victory. This is an all banking fund with tiny exposure to brokerage and insurance companies.
Fidelity Select Consumer Staples Fund: A sectoral fund can be a good pick to diversify your mutual fund investment portfolio. Investment into this fund is set at a minimum of $2500, and carries a 0.77 expense ratio.
T.Rowe Price Floating Rate: Compared to conventional bond funds, the floating rate fund will weather the fixed rate storm. These bonds adjust on a regular basis and the interest is linked to the LIBOR or US treasury bill rate. With the year expected to witness rising interest rates, floating rate bonds are poised for a value appreciation.
Hussman Strategic Total Return: This fund’s portfolio is primarily comprised of fixed income securities. This helps to hedge against inflation, whilst keeping the market risk to a minimum. A large part of the fund is kept in cash, followed by bonds, and the barest minimum in stocks.
The current economy is in a state of rising rates backed by a mature business cycle. Choose to invest in an array of the above mentioned funds and build your wealth.