Mutual funds can be a great way for investors to diversify their portfolios and potentially achieve long-term financial goals. With 2021 just around the corner, it’s essential to keep an eye on the top mutual funds that may perform well in the upcoming year. Here are the top 10 mutual funds to watch in 2021:
### 1. Vanguard Total Stock Market Index Fund (VTSAX)
VTSAX is one of the largest mutual funds in terms of assets under management, and it provides broad exposure to the U.S. stock market. This low-cost index fund is known for its diversification and historically strong performance.
### 2. Fidelity Contrafund (FCNTX)
Managed by star fund manager Will Danoff, FCNTX has a solid track record of outperforming its benchmark index over the long term. This actively managed fund focuses on large-cap growth stocks and has consistently delivered strong returns.
### 3. T. Rowe Price Blue Chip Growth Fund (TRBCX)
TRBCX invests in large-cap growth companies with the potential for above-average earnings growth. This fund has a history of beating the S&P 500 index and is popular among investors seeking exposure to high-growth stocks.
### 4. American Funds Growth Fund of America (AGTHX)
AGTHX is one of the largest and oldest mutual funds, known for its focus on large-cap growth stocks. Managed by a team of seasoned professionals, this fund has a proven track record of delivering solid returns over the years.
### 5. PIMCO Total Return Fund (PTTAX)
PTTAX is a top-performing bond fund managed by renowned investor Bill Gross. This actively managed fund focuses on fixed-income securities and has a history of outperforming its benchmark index, making it a top choice for investors seeking exposure to bonds.
### 6. TIAA-CREF Equity Index Fund (TIEIX)
TIEIX is a low-cost index fund that tracks the performance of the S&P 500 index. This fund is popular among investors seeking broad exposure to U.S. large-cap stocks at a low cost and has a history of delivering competitive returns.
### 7. Dodge & Cox International Stock Fund (DODFX)
DODFX is a top-performing international stock fund that focuses on large-cap value stocks outside the U.S. This fund has a history of outperforming its benchmark index and is a good choice for investors looking to diversify their portfolios with exposure to international equities.
### 8. T. Rowe Price New Horizons Fund (PRNHX)
PRNHX is a top-performing small-cap growth fund that focuses on companies with strong growth potential. Managed by a team of seasoned professionals, this fund has a history of outperforming its benchmark index and is a top choice for investors seeking exposure to small-cap stocks.
### 9. Vanguard Balanced Index Fund (VBIAX)
VBIAX is a balanced fund that provides exposure to both U.S. stocks and bonds in a single investment. This low-cost index fund is a popular choice for investors seeking a diversified portfolio with a mix of equities and fixed-income securities.
### 10. Fidelity Total Market Index Fund (FSKAX)
FSKAX is a low-cost index fund that provides broad exposure to the U.S. stock market, including large-cap, mid-cap, and small-cap stocks. This fund is known for its low expenses and historically strong performance, making it a top choice for investors seeking broad market exposure.
In conclusion, these top 10 mutual funds offer a range of investment options for investors looking to diversify their portfolios and potentially achieve their financial goals in 2021. By keeping an eye on these funds and conducting thorough research, investors can make informed decisions about where to allocate their investment dollars in the coming year.
### FAQs:
#### 1. How do I invest in mutual funds?
To invest in mutual funds, you can open an account with a brokerage firm or directly with the fund company. You can then choose the mutual funds you want to invest in and allocate your investment dollars accordingly.
#### 2. What are the benefits of investing in mutual funds?
Mutual funds offer diversification, professional management, and convenience for investors looking to build a balanced portfolio. They also provide access to a wide range of investment options, including stocks, bonds, and other securities.
#### 3. Are mutual funds safe investments?
While mutual funds offer diversification and professional management, they are not risk-free investments. The value of mutual funds can fluctuate based on market conditions, and investors may be subject to losses. It’s essential to conduct thorough research and consult with a financial advisor before investing in mutual funds.
