|Expense Ratio (net)||0.52%|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||Above Average|
|Beta (3Y Monthly)||1.05|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||Jan 4, 1965|
Nearly all of the top 20 actively managed equity mutual funds in the U.S., as ranked by assets, are behind the S&P 500 index’s 23.2% return through October. The market beaters— (ticker: FDGRX), (VDIGX), and (RPMGX)—are also topping the S&P 500 over the past one and five years. The Fidelity and T. Rowe Price funds are ahead for the past 10 years, as well, Morningstar data show.
How good are the mutual funds in your 401(k) plan? Choose wisely, and you might sip café au lait as you celebrate your retirement on an around-the-world cruise. Choose unwisely, and you might have to settle for the local Starbucks.Every year, with the help of financial data firm BrightScope, which ranks 401(k) plans, we look at the 100 mutual funds with the most assets in 401(k) and other defined-contribution plans, including 403(b)s. To help you pick the best mutual funds for your 401(k), we analyze the actively managed funds among the 100 most popular options. Most of the funds are solid, some are standout and only a handful are disappointing. In the end, 30 funds, described below, won our seal of approval.We didn't weigh in on the index funds that rank high in employer-sponsored plan assets because the art of choosing a good index fund rests on three simple questions: Which index do you want to emulate? How well has the fund done in matching that index? How much does the fund charge? We have no problem with the index funds listed in the top 100.But assessing actively managed mutual funds is trickier. We analyzed each fund's long-term returns and year-by-year performance. We looked past raw results to examine each fund's volatility and how it fared in difficult markets. We also considered manager tenure and fees, among other factors.Here are the 30 best mutual funds for 401(k) retirement savers, plucked out of the nation's 100 most popular options. Some of these funds might not be available in your 401(k), and some might not be suitable for your personal situation. But each of these mutual funds stands out for their quality, making it a good choice for its respective category. SEE ALSO: The Berkshire Hathaway Portfolio: All 47 Buffett Stocks Explained
Kiplinger's coverage of mutual funds dates back to the 1950s, and we've been putting together a list of our favorite no-load mutual funds since 2004, drawing on the broad experience of our editors. We believe in holding funds rather than trading them, so we focus on promising funds with solid long-term records - and managers with tenures to match.A good garden will feature a mix of tall evergreens, midsize perennial flowering plants, fast-growing ground covers and maybe a showy piece such as a sculpted topiary. Some require regular tending (an annual pruning, say), while others can be left alone. Some might flower in the spring; others blaze with richly hued foliage in the fall. Each plant is chosen for its individual merits, but together they form a beautiful garden.Assembling a portfolio of mutual funds is much the same. We consider several variables and a mix of strategies when we select the Kiplinger 25, our favorite actively managed no-load funds. We think they're the cream of the crop, although they might not all be appropriate for your portfolio. The group is a diverse collection that ranges across large- and small-company funds, foreign and U.S. holdings, and high-yield and mortgage-backed bonds. Just like a mix of plant varieties, they thrive at different times and in different conditions.Here is an introduction to each of these 25 low-fee mutual funds: what makes them tick, and what kind of returns they've delivered. SEE ALSO: The 27 Best Mutual Funds in 401(k) Retirement Plans
We take a numerical look through this week's Morningstar research. Plus, our most popular articles and videos for the week ended July 5.
Scott Chan has added two new value-oriented mutual funds -- one focused on mid caps and one on large caps -- the the model portfolio at Investing Daily's The Complete Investor.
A version of this article was originally published in the March 2019 issue of Morningstar FundInvestor. Every year, I write about the Fantastic 40--although the number varies slightly each time. It's a select number of funds that pass every screen I set up.
This article originally appeared in Morningstar Direct Cloud and Morningstar Office Cloud. Five of the firm's six funds carry Morningstar Analyst Ratings of Gold, and the sixth-- Dodge & Cox Global Bond DODLX --is rated Bronze. Virtually across the board, Dodge & Cox funds rank near the top of their Morningstar Categories for most longer time frames.
This article was originally published in the January 2019 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor by visiting the website. Buy the Unloved is a contrarian investment strategy that has done well over 25 years, but it's getting an update in 2019.
"If a statue is ever erected to honor the person who has done the most for American investors, the hands down choice should be Jack Bogle." - Warren Buffett