The most certain thing about 2017 is that it was hard for the investors. The financial and economic environment that exists today is a hard onem with growing interest rates, a new president, a business cycle that is maturing, etc. Investors have got enough reasons to stay cautious, if not absolutely anxious. But now it doesn’t look like the time to sit on the sidelines or ensconce yourself into some sort of comfort zone and not invest at all. In any marketplace, let it be bear or bull, you’ll have your share of outperformers and underperformers, so if there’s any process of making money, you need to find the underperformers. Explicitly saying, there are lots of pre-designed plays to capture profits while being protective towards the next correction.
We’ve decided on our list of top 4 high-quality best mutual funds of 2017. These have been shortlisted keeping in mind the challenging market and adverse financial situations. This list represents a diverse roster of MFs that could necessarily help you navigate the hard year ahead.
Vanguard 500 Index Fund (VFINX): VFINX is one of the best mutual funds of 2017 because of its broad index type mutual fund and its expenses which include 0.16% of the value or $16 yearly for every invested $10,000. There is an initial investment requirement of $3,000. A great mutual funds portfolio begins with some major holding, and the first-rate fund to for the same in 2017 is, of course, the most popular Vanguard 500 Index Fund (MUTF: VFINX). Despite the fact that its near relative, Vanguard Total Stock Market Index (MUTF: VTSMX) happens to be the largest stock mutual fund when one considers the measure of total assets under management, its public exposure to small- and mid-caps could be a good enough reason to hold it back. Investors may use a major holding like VFINX which mainly focusses only on the U.S. large-cap stocks, in a year that will likely be predominately risk-off like those which are found in S&P 500 index.
Fidelity Nasdaq Composite Index Fund (FNCMX): The FNCMX is a broad index type mutual fund, and its expenses is 0.29%. There is an initial investment requirement of $2,500. Even though it is highly recommended to have the S&P 500 exposure for any investors at the same time, to successfully give stability in a risky environment, a value-oriented fund can work well. However, while the economic system is healthy and interest rates are rising, growths stocks are normally the standard winners. The Nasdaq Composite Index is the simple virtue of tracking; Alphabet, Google’s parent company, and Microsoft are among top holdings.
Vanguard Health Care (VGHCX): VGHCX is among the best mutual funds of 2017 in the healthcare sectors. The expenses for this mutual fund range from 0.36%. What is also worth noting is that there is an initial investment requirement of $3,000. With the presidential race and Trump’s win already having boosted the healthcare sector’s prospects, now all it needs is reforms. In this year 2017 thrust for funds like Vanguard Health Care Fund is expected to continue. VGHCX can’t be necessarily considered as a path to jump to the comparatively high-growth (even though high-risk) the recent return of biotech stocks that came into the picture amid Trump’s victory. But still there are enough options to go within the pharmaceuticals sector such as fund holdings Eli Lilly and Co (NYSE: LLY), Merck & Co., Inc. (NYSE: MRK) and Bristol-Myers Squibb Co (NYSE: BMY). These are available only about 15% of the fund, it has to be noted that VGHCX does provide much exposure to biotech kind of stocks. Other segments that include tech and the other managed healthcare equipment and services. Mutual fund options like VGHCX also play a great deal in the defensive-healthcare sector, anticipating if the market begins a drowning trend in the year 2017, just to provide an additional layer of protection for the shareholders.
Fidelity Select Banking (FSRBX): FSRBX is a mutual fund type of the banking Industry sector. The expense for this mutual fund ranges from 0.79%. There is an Initial Investment requirement of $2,500. One of the best mutual funds of 2017 is Fidelity Select Banking Fund (MUTF: FSRBX) While it is essentially a matter of truth that the creation of narrower spreads is a result of rising interest rates, between the interests they pay the customers for Treasury bills and deposits, bank profits are eroded. However, the US Federal rates are uncharacteristically so less now that any increase in rates could result in the banks widening their spreads before narrowing them again. If a similar environment holds up in the year 2017, as anticipated, stocks like US Bancorp and Bank of America Corp and Wells Fargo & Co, which are amongst FSRBX’s top holdings, should have a high progressive year ahead.
