Crafting a robust mutual fund portfolio necessitates diversification across various asset classes and investment strategies, all while keeping fees at bay. Forbes Advisor has curated a list of ten top-tier mutual funds, each selected for its performance, low fees, and strategic approach.
Summary: Best Mutual Funds
| Fund (Ticker) | 10-Year Avg. Ann Return |
|---|---|
| Fidelity International Index Fund (FSPSX) | 4.69% |
| Fidelity U.S. Sustainability Index Fund (FITLX) | n/a |
| Schwab S&P 500 Index Fund (SWPPX) | 12.80% |
| Shelton Nasdaq-100 Index Investor Fund (NASDX) | 17.89% |
| Schwab Fundamental US Large Company Index Fund (SFLNX) | 11.50% |
| Fidelity Intermediate Municipal Income Fund (FLTMX) | 2.33% |
| Dodge & Cox Income Fund (DODIX) | 2.55% |
| Vanguard Long-Term Investment-Grade Investor Shares (VWESX) | 3.14% |
| Schwab Fundamental US Small Company Index Fund (SFSNX) | 8.52% |
| T. Rowe Price Mid-Cap Growth Fund (RPMGX) | 10.76% |
Fidelity International Index Fund (FSPSX)
Why We Picked It: FSPSX stands out with its low expense ratio, making it hard for competitors to beat this market-cap-weighted index fund.
It encompasses mid- and large-cap companies from 21 international markets, offering investors exposure to developed markets outside the U.S. and Canada.
FSPSX boasts strong average annual returns compared to its peers over various timeframes, making it a compelling choice for diversification.
Fidelity U.S. Sustainability Index Fund (FITLX)
Why We Picked It: FITLX provides investors with a low-cost avenue to invest in the MSCI USA ESG Select Index, screening companies for environmental, social, and governance factors.
Despite being categorized as a blend portfolio, FITLX favors growth equities and has outperformed its Morningstar category average over recent years.
Schwab S&P 500 Index Fund (SWPPX)
Why We Picked It: SWPPX offers exposure to the 500 largest U.S. companies at a minimal fee, delivering broad market diversification.
With a 10-year average annual return exceeding its Morningstar category average, SWPPX is an attractive option for investors seeking performance consistency and wide market representation.
Shelton Nasdaq-100 Index Fund Investor (NASDX)
Why We Picked It: NASDX has emerged as a top performer, outpacing 98% of its Morningstar category over the past decade. With significant exposure to fast-growing sectors like technology, communication services, and consumer cyclicals, NASDX offers investors potential for robust returns.
Schwab Fundamental US Large Company Index Fund (SFLNX)
Why We Picked It: SFLNX employs a contrarian, value-oriented approach, focusing on stocks that have declined relative to certain fundamentals. This strategy aims to capitalize on reversion to the mean, making it suitable for investors anticipating market volatility.
Fidelity Intermediate Municipal Income Fund (FLTMX)
Why We Picked It: FLTMX targets bonds with a dollar-weighted average maturity between three and ten years, offering income exempt from federal taxes. With a focus on investment-grade bonds and an experienced management team, FLTMX presents a compelling option for fixed-income investors.
Dodge & Cox Income Fund (DODIX)
Why We Picked It: DODIX, boasting a history of over 35 years, offers a well-diversified portfolio of approximately 1,300 bonds. With a focus on fundamental research and factors like yield, credit quality, and duration, DODIX provides investors with steady returns and lower volatility.
Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX)
Why We Picked It: VWESX promises both income and capital appreciation, particularly in a rising interest rate environment. With a focus on long-term corporate bonds and a low expense ratio synonymous with Vanguard, VWESX is an attractive option for income-oriented investors.
Schwab Fundamental US Small Company Index (SFSNX)
Why We Picked It: SFSNX taps into the potential of small-cap stocks to outperform larger counterparts over time. Utilizing a value-oriented approach and focusing on sales, cash flow, and dividends, SFSNX offers investors exposure to smaller companies with growth potential.
T. Rowe Price Mid-Cap Growth Fund (RPMGX)
Why We Picked It: RPMGX, managed by Brian Berghuis since its inception, emphasizes sustainable business models and reasonable valuations. With returns consistently surpassing its category average and a focus on mid-cap growth with lower volatility, RPMGX presents a compelling option for growth-oriented investors.