Between 1998 and 2021, the total global net assets of U.S.-registered mutual funds exploded from $5.53 trillion to around $27 trillion. This growth underscores the popularity of mutual funds — which offer the opportunity to earn attractive returns while diversifying one’s portfolio — in any type of market. But given that mutual funds are typically considered safer than purchasing individual stocks, their appeal may be heightened in a bear market like we’re experiencing now. But with so many different mutual funds available, it can be difficult to know which ones are the best mutual funds to purchase.
To help make the decision easier, here is a look at some of the best mutual funds to buy.
| FSLBX | Fidelity Select Brokerage & Investment Management | $108.04 |
| PRISX | T. Rowe Price Financial Services Fund | $31.48 |
| VEIPX | Vanguard Equity Income Fund | $41.22 |
Fidelity Select Brokerage & Investment Management (FSLBX)
Fidelity Select Brokerage & Investment Management (NASDAQ:FSLBX) is a mutual fund that invests in various brokerage and investment management companies. The fund seeks to provide investors with growth and income by purchasing shares of companies engaged in the business of providing brokerage and investment management services.
The fund is managed by a team of experienced financial professionals who deeply understand the markets. As such, they can help navigate the fund through difficult economic and market conditions.
FSLBX has returned 24.6% over the past three years, 17.7% over the past five years, and 13.9% over the past 10 years. The fund has a five-star rating from Morningstar.
T. Rowe Price Financial Services Fund (PRISX)
T. Rowe Price Financial Services Fund (NASDAQ:PRISX) has around $1.5 billion in assets and invests 80% of that in financial services companies. This industry has historically been one of the most lucrative sectors. Plus, the fund will invest in software companies that derive at least 50% of their revenue from the financial services industry.
If you’re looking for a mutual fund with a proven track record of success, the T. Rowe Price Financial Services Fund is worth considering, with a three-year average annual return of 11.4%, a five-year average annual return of 10%, and a 10-year average annual return of 12.8%.
The selection process seeks out high-quality stocks such as Wells Fargo (NYSE:WFC), Citigroup (NYSE:C) and Charles Schwab (NYSE:SCHW). And it has a below-average expense ratio of 0.88%.
Vanguard Equity-Income Fund (VEIPX)
Stability and safety are two important factors to consider when investing in mutual funds, especially when legendary investors like Jeremy Grantham predict the bursting of a “super bubble” soon. It’s important to look for funds that consistently pursue safer investments in the current macroeconomic environment.
Vanguard Equity Income Fund (NASDAQ:VEIPX) is a welcome reprieve in such circumstances. The fund invests primarily in stocks of large U.S. companies with a history of paying dividends.
The fund has a history of delivering strong performance despite market volatility and stock market fluctuations. Vanguard Equity Income Fund has an annualized return of 10.7% over a three-year period, 9.7% over a five-year period, and 11.4% over a 10-year period. Additionally, the expense ratio of this fund is one of the best in the industry at just 0.26%.
Some of the notable companies it holds include Johnson & Johnson (NYSE:JNJ), Pfizer (NYSE:PFE) and Procter & Gamble (NYSE:PG)
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
