A mutual fund is an investment based fund that pools money from various investors to buy securities. It is professionally managed and provides the investor more diversification and liquidity. It continues to be one of the more popular tools of investment for those who want to beat the market or for those who are looking for a wide range of investments instead of buying stocks and shares. Mutual funds trade once every day as opposed to stocks. The cost of a share in a mutual fund is called the net asset value (NAV). Most investors own them as part of their retirement plan. There are about 9,000 mutual funds today with $16 trillion in assets. A few of the mutual funds are index funds tracking the performance of a particular market index. But most are professionally and actively managed by fund managers who buy and sell a range of securities in order to beat the market, based on specific strategies they draw up. Some target every aspect of the market and investors can put money in a range of them including commodities, real estate, and equities.

Kiplinger, an American finance magazine, has rated the ten best mutual funds by category. Large company stock funds that have an outstanding performance for the past one year are:

• Biondo Focus Inv (BFONX)
• Fidelity OTC Portfolio (FOCPX)
• CGM Focus (CGMFX)
• Ridgeworth Aggressive Growth Stock A (SAGAX)
• Vanguard Capital Opportunity Inv (VHCOX)
• ICON Fund S (ICNZX)
• Edgewood Growth Retail (EGFFX)
• Fidelity Growth Company (FDGRX)
• Invesco Value Opportunities A (VVOAX)
• Primecap Odyssey Growth (POGRX)

The 10 best mutual funds to invest in large company stock funds that have been performing well for the past three years are:

• Fidelity OTC Portfolio (FOCPX)
• Parnassus Endeavor (PARWX)
• USAA Nasdaq 100 Index (USNQX)
• Shelton Capital Nasdaq 100 Index Direct (NASDX)
• Polen Growth Inv (POLRX)
• Edgewood Growth Retail (EGFFX)
• DoubleLine Shiller Enhanced CAPE N (DSENX)
• Janus Forty T (JACTX)
• Fidelity Growth Company (FDGRX)
• Rydex Nasdaq 100 H (RYHOX)

The top-performing large company stock funds for the past five years consistently are:

• Fidelity OTC Portfolio (FOCPX)
• Vanguard Capital Opportunity Inv (VHCOX)
• Parnassus Endeavor (PARWX)
• Edgewood Growth Retail (EGFFX)
• Vanguard Primecap Inv (VPMCX)
• Morgan Stanley Instl Growth Portfolio A (MSEGX)
• Vanguard Primecap Core Inv (VPCCX)
• Shelton Capital Nasdaq 100 Index Direct (NASDX)
• Catalyst Dynamic Alpha I (CPEIX)
• Transamerica Capital Growth A (IALAX)

The 10 best mutual funds to invest in in large company stock funds that have been performing well for the past ten years are Parnassus Endeavor (PARWX), Fidelity OTC Portfolio (FOCPX), Shelton Capital Nasdaq 100 Index Direct (NASDX), USAA Nasdaq 100 Index (USNQX), Reynolds Blue Chip Growth (RBCGX), Fidelity Growth Company (FDGRX), Monetta Young Investor (MYIFX), Rydex Nasdaq 100 H (RYHOX), AllianceBernstein Large Cap Growth A (APGAX) and AMG Yacktman Focused S (YAFFX).

The top-performing large company stock funds for the past twenty years consistently are Vanguard Capital Opportunity Inv (VHCOX), Oakmart Select I (OAKLX), Calamos Growth A (CVGRX), Fidelity New Millennium (FMILX), Vanguard Primecap Inv (VPMCX), Quaker Strategic Growth A (QUAGX), LeggMason ClearBridge Aggressive Growth A (SHRAX), Principal Capital Appreciation A (CMNWX), Amana Growth (AMAGX) and Janus Forty T (JACTX).

According to TheStreet, an American financial news website, the top mutual investment funds as of the end of May, 2017, are AQR Long Short Equity N (QLENX), DoubleLine Shiller Enh CAPE (DSENX), Matthews Emerging Asia Inv (MEASX), Fidelity Japan Small Comp (FJSCX), Hennessy Japan Small Cap Inv (HJPSX), DFA Japanese Small Co Inst (DFJSX), ProFunds-Consumer Good Ultra (CNPSX), AQR US Defensive Equity N (AUENX), Lazard Global Listed Infr Op (GLFOX), Gurtin National Mun Oport Vl (GNMFX), Glenmede Large Cap Growth (GTLLX), Performance Trust Strat Bond (PTIAX), GMO Opportunistic Income VI (GMODX), Vanguard Global Minimum Vol (VMVFX), SA US Core Market (SAMKX), Saturna Idaho Tax-Exempt (NITEX), T Rowe Price Japan (PRJPX), NWM Momentum (MOMOX), Vanguard Russell 1000 Gro Ix (VRGWX) and PIMCO Income Fund A (PONAX).

The U.S. News Mutual Fund Score has one of the best methodologies to rate mutual funds, their track records and to predict where a mutual fund might head in the future. They have profiled around 100 of the largest funds with inputs from a range of experts. These include fund managers, analysts, data investors and newsletter writers. Their fund level data is updated each month, on the fifth business day.

Mutual fund investments have a downside too. They are expensive, tax inefficient and outdated. Despite this, they are still popular. Forbes gives a list of the ten best mutual funds with their pros and cons to draw from. The largest is Pimco Total Return (PTTAX) which has a long-term track record with extensive experience but which is expensive with a long duration portfolio.

The question to be answered is if mutual funds are worth your money. Going by the $16 trillion invested in them nationwide, they are.