It’s almost difficult to believe that people still buy mutual funds these days given the rise in prominence of exchange-traded funds. But they absolutely do. In fact, 54.9 million households owned mutual funds, according to the 2016 Investment Company Fact Book.
Roughly 45% of all American households owned mutual funds, with the median mutual fund assets of mutual fund-owning households reaching $120,000 by the end of 2015, based on a median number of three mutual funds per household, or $40,000 per fund.
And of the $18.1 trillion in net assets across U.S. investment companies, mutual funds made up the lion’s share — $15.7 trillion, or 87%. ETFs accounted for just $2.1 trillion, by comparison.
Despite 10 consecutive years of outflows for actively managed domestic equity funds, they still represent a lion’s share of household investments. That means they’re still vital to the health of American retirement accounts, and because there are so many, it really pays to be able to separate the winners from the losers.
Today, we’re going to look at 10 mutual funds you can buy and hold forever across a number of different asset classes, providing something for everybody.