Income-oriented mutual funds to consider include the PIMCO Total Return ( PTTAX) and the Vanguard Equity Income Fund ( VEIPX). The bond funds will produce a steady income through interest payments while the limited stock component may allow you to see some investment growth. You might aim to invest 30% in stock mutual funds and the rest in bond funds. If you are only a few years away from your goal, your focus should be on minimizing risk so you don’t wind up short money when you need it. Balanced mutual funds to consider include the Vanguard Wellesley Income Fund ( VWINX) and the American Funds American Balanced Fund ( ABALX). Balanced mutual funds invest in both bonds and stocks, offsetting some of the risk associated with stocks. If investing heavily in stocks makes you nervous or you have a goal that’s within five to 10 years away, you may want an approach that reduces the potential for rapid changes in investment value. Growth mutual funds to consider include the Vanguard Growth Index Fund ( VIGAX) and Fidelity Growth Discovery Fund ( FDSVX). These funds have more risk, but they also have more potential for large gains. You may look specifically for mutual funds labeled “growth funds” to invest in companies that are expected to grow faster than others. With that in mind, your mutual fund allocation should probably be 70% to 100% in stock-based mutual funds to position yourself for the most investment growth. Long-term mutual fund investing means you have decades to reach your financial goals. Once you’ve identified your mutual fund investing goals, you can pick funds with the right investment strategy tailored to your goals. Investors who need easy access to their money in the very short term should consider high-yield savings accounts, which provide greater liquidity and are federally insured up to at least $250,000. If you’re saving for a shorter-term goal, like buying a home or a car within the next few years, a bond market mutual fund might be a better option. While no investment guarantees a return, mutual funds are safer than some other options because you’re invested in a broad range of companies or debts. You’ve got plenty of time to ride out the inevitable ups and downs of the stock market. If you’re investing for a long-term goal, like retirement or your child’s college education, stock mutual funds are a great choice. What financial goals would you like to reach by investing in mutual funds? Are your goals only a few years away or decades in the future? Decide on Your Mutual Fund Investment Goals This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT NASDAQ data is at least 15 minutes delayed. NYSE and AMEX data is at least 20 minutes delayed. Visit to get our data and content for your mobile app or website. Visit Performance Disclosure for information about the performance numbers displayed above. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. The monthly returns are then compounded to arrive at the annual return. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. These returns cover a period from Januthrough September 12, 2022. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.51% per year. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. and Morningstar, Inc.Ĭopyright 2022 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606Īt the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Forbes Media, LLC Investor's Business Daily, Inc. Each of the company logos represented herein are trademarks of Microsoft Corporation Dow Jones & Company Nasdaq, Inc. This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein.
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