Mutual funds are one of the preferred investing tools for both individual and professional investors who want access to a broad range of investments, rather than invest in stocks or bonds individually. As compared to stocks or exchange-traded funds, mutual funds trade just once a day. The price of a share is known as the fund’s net asset value or NAV. Often, these funds are part of a defined contribution retirement plan such as a 401(k) or an individual retirement account such as an IRA.

Most mutual funds, barring index funds, are actively managed. Fund managers have an investment strategy of buying and selling a variety of securities in an attempt to beat the market. Buyers can invest in a variety of assets such as equities, bonds, real estate and commodities, to focus on nearly every part of the market.

Let’s take a look at the best mutual funds 2017 in the US across different categories.

Stock Mutual Funds

Stock mutual funds provide long-term growth, unlike bond funds, which focus on income.

• Harbor Large Cap Value Fund HAVLX: Harbor Large Cap Value has assets amounting to almost $615.95 million invested in 44 different holdings, as of August 14, 2017, which makes it one of the best mutual funds of 2017. This fund performs well in tough markets and invests primarily in the shares of large companies. The fund has given returns of 20.23% over the past year and 12.12% over the past three years. It has an expense ratio of 0.68%.
• Vanguard Instl Total Stock Market Idx Fd VITPX: The objective of this investment is to provide a tax-efficient investment return comprising long-term capital appreciation. The fund purchases stocks that give lower dividends – primarily stocks of large- and mid-capitalization US companies included in the Russell 1000 Index. Employing statistical analysis, this mutual fund minimizes taxable dividends. The intended result is a portfolio with lower taxable income distributions, but one that will track the total return performance of the index to some extent. The fund has returned 16.84% over the past year, 10.84% over the past three years, 15.14% over the past five years, and 7.99% over the past decade. Fees are low compared to other funds in the category. The fund has an expense ratio of 0.06%.

Taxable Bond Mutual Funds

Taxable bonds are debt securities with returns that require taxation.

• SEI Tax-Advantaged Income (STET) Fund SEATX: This long-term mutual fund aims to provide a tax-efficient investment with the highest level of income possible. At least 50% of the fund’s net assets are invested in municipal securities, such as bonds. Bonds, primarily issued by state and local governments and their agencies located in any of the fifty states, pay interest exempt from federal income tax, including the alternative minimum tax. It is non-diversified. The fund has returned 2.09% over the past year, 5.68% over the past three years, and 5.19% over the past five years. Fees are average compared to similar funds. The fund has an expense ratio of 0.87%.

• PIMCO Long Duration Total Return Fund PLRIX: It is one of the best mutual funds of 2017; the objective of this investment is to get maximum total return while following prudent investment management strategies. At least 65% of its total assets are invested in a diversified portfolio of fixed income instruments of varying maturities, including bonds, debt securities, and other similar instruments. The fund may invest up to 30% of its assets in securities denominated in foreign currencies. The fund has returned -0.97% over the past year, 5.97% over the past three years, 3.97% over the past five years, and 8.68% over the past decade. Fees are below average compared to other funds in this category, with an expense ratio of 0.50%.

Municipal Bond Mutual Funds

These are mutual funds that invest primarily in municipal bonds.

• T. Rowe Price Tax-Free High Yield Fund PRFHX: This fund invests primarily in long-term low- to upper-medium-grade municipal securities to get maximum returns exempt from federal income taxes. At least 80% of the fund’s income is exempt from federal income taxes. The other 20% of the income may be derived from securities subject to alternative minimum tax. Thereby, qualifying as one of the best mutual funds of 2017.

The fund has shown returns of 0.51% over the past year, 4.99% over the past three years, 4.62% over the past five years, and 4.90% over the past decade. Fees are below average in comparison to funds in the same category. It has an expense ratio of 0.69%.

Sector Mutual Funds

Sector funds invest exclusively in companies of a specific sector.

• Fidelity Select Insurance Port FSPCX: This mutual fund is one of the best mutual funds of 2017 and aims to appreciate capital by investing at least 80% of assets in securities of companies engaged in property, life, or health insurance. The non-diversified fund invests in domestic and foreign issuers, and primarily in common stocks. Its fund has returned 26.32% over the past year, 14.54% over the past three years, 18.92% over the past five years, and 6.50% over the past decade.

Fees are below average compared to funds in the same category, but the risk is above average. It has an expense ratio of 0.79%.