As we finish the remainder of 2016, the best mutual funds to buy are most likely to be the ones that have the best year-to-date returns, especially those that trended higher in the third quarter.
You may have heard the investing mantra, the trend is your friend until the end. For the rest of 2016, this might apply to certain sectors, such as energy, technology and industrials, and to a few mutual fund categories like small-cap stock and emerging markets, all of which have year-to-date gains that are ahead of the S&P 500 and most still had momentum in the third quarter. We also highlight a few select bond fund types.
For performance reference on the S&P 500, Vanguard 500 Index Fund (MUTF:VFINX), is up about 6% year-to-date.
With that said, there are a few areas that are leaders in 2016 but lost steam in the third quarter. One such example in the mutual funds universe is gold and precious metals. For example, Vanguard Precious Metals and Mining (MUTF:VGPMX) has jumped more than 60% in 2016 but stumbled down 14% in the third quarter. Therefore, the fourth quarter doesn’t show much promise for the funds that invest in gold.
So with that rationale, here are 10 of the best mutual funds for the rest of 2016: