Picking stocks is a difficult game, especially in this volatile market. But mutual fund investors with a 401k plan don’t necessarily have it any easier.
After all, they get their list of funds, then have to decide which ones to buy — and how much they should put in them — just like stock pickers. And sometimes the strategy and expenses can be just as confusing as dissecting an individual corporation’s 10-K filing with the SEC.
If you’re looking to take the guesswork out of your 401(k) in 2013, here are five individual funds that rank at the top of their class. These mutual funds would be a great addition to your 401(k) or even your IRA, but more importantly, each is representative of a specific asset class that I think you should invest in. If you can’t find these particular mutual funds in your 401(k) group, try to find the “flavor” in a similar investment. That way, even if you can’t pick the exact list here you can hopefully enjoy similar returns in the New Year.
Here are the best 401(k) funds for 2013: