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Top Performing Mutual Fund – As of May 2010

As of April 30, 2010 – Best Stock Fund is (Drumroll Please) :

  • Profunds UI Small Cap – Symbol UAPIX

Before you move away from this page of the best performing Mutual Funds, we need to explain how we define “best performing.”  In the investment world and particularly, mutual fund world, “best performing” can be measured in a myriad of ways.

We know you just want to bottom line, but the bottom line needs explaining. First, let’s define “performance.”  This is rather easy because performance for most people, including us, simply means highest return.  That is, the particular fund had the best return of every dollar invested.  However, defining “best” is not so simple

Time Frame of Performance:

For example, we need to define the time frame of the return – is it the top performing mutual fund this month, last year, over the past 5 years, or something else.

Riskiness of the Investment:

What do we mean by risk?  Mutual fund investments are divided up into asset classes.  And each asset class has a different risk/return profile (sorry folks, there is no free lunch).  I’m afraid you can’t have your cake and eat it too.  There is no such thing as a low risk investment that also has consistently higher returns.

It is not meaningful, therefore, to compare bond mutual funds in the same light as stock mutual funds.  We have to compare apples to apples.  As you will see, investments have a different return depending on the asset class of the investments.  What we mean by this is that, for example, a stock mutual fund generally has a higher return over a longer period of time but tends to fluctuate wildly over the short term – therefore it is usually considered “riskier.”  Bond funds, on the other hand, tend to have lower returns over long periods of time, but they do not fluctuate as much from year to year – therefore they are generally considered less risky.

If your tolerance for risk is low, you will want to invest in less risky investments such as bonds.  But you will need to be prepared to have lower returns in exchange for greater stability.

Bottom Line:

So, what’s the bottom line.?  I am sure you are saying, “just show me the results already!”  Well, we will list them here, but be sure to read the explanation so that you know how we derived at the results.  You may very well see a different list in other publications, but you need to understand that this is because our methodologies of measuring “best performance” is different.

As of April 30, 2010 – Best Stock Fund is (Drumroll Please) :

  • Profunds UI Small Cap – Symbol UAPIX

Our Methodology Explained:

Our time frames for analysis is a little different than many other publications.  We do not believe that high rates of return measured over very short term periods is meaningful.  Even a Monkey can throw darts and win a over a short period, but longer term results takes strategy and smarts and wisdom.

We also eliminate funds that do not have a long term track record.  We don’t list funds unless they have a long historical record.  This tends to eliminate the charlatan flash-in-the-pan types of investment vehicles that happen to get lucky.

These are the top performing mutual funds, i.e., funds with the highest rate of return when measured as an average return over a combined period of 1 month, 3 months, 6 months and 12 months as of 30 April, 2010.

There you have it.  Stay tuned for updates over the coming months.

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Be the first to comment - What do you think?  Posted by admin - June 7, 2010 at 2:14 pm

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Best Performing Mutual Funds

Why Choose The Best Performing Mutual Funds

Diversity may be added to one’s investment portfolio by including the best performing mutual funds; that is, rather than purchasing an individual stock, you invest in a fund which is composed of many companies. Another advantage is that the assortment of companies in which you are investing is defined by a professional fund manager whose livelihood is dependent upon how his fund performs. A problem with mutual funds is that there is an expense involved since you are required to pay for the fund’s management, which is automatically deducted from the value of the fund. These charges can seriously affect the income that your investment generates. Prior to making any investment, even with the best performing mutual funds, you ought to spend some time calculating the potential fees which are charged by the fund.

Where to Find the Best Performing Mutual Funds is an excellent resource in locating the top performing mutual funds. The site provides a lot of free data, and the best performing funds are segregated into groups through which you can browse in order to identify the fund that fits your investment style. You will find these groupings for the best performing mutual funds listed along the left margin of the site.

Another site which I utilize in getting data to help me locate a top performing mutual fund is MSN’s Money website. As with Morningstar, this site provides useful data regarding the best performing mutual funds; but, it is the Expert Picks section which is particularly meaningful. Mutual fund research is made even better by permitting you to stand behind a professional mutual fund picker as he oversees a mutual fund portfolio in real time!

Most Reliable Source of Best Performing Mutual Funds

Finally, another resource from which you may glean information about the top mutual funds is the brokerage house where you maintain an account. While this may seem obvious, online brokerages frequently provide a great amount of data to their clients which goes overlooked. Explore the website of your brokerage house for the suggestions which they routinely provide regarding the best performing mutual funds.

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6 comments - What do you think?  Posted by admin - May 17, 2010 at 2:32 am

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Sector Mutual Funds

What Are Sector Mutual Funds?

Well, sector mutual funds are a way in which people can invest in niche markets. If you think that the economy, or a part of the economy, is undervalued and will eventually become stronger, then this kind of investing is for you! You’ll be able to accurately pinpoint how you want to invest with sector mutual funds. Whether you want to invest in health care, biotechnology, or any other kind of technology, you can do it all with sector funds.

The most common story that people hear in regards to sector mutual funds is that they are very selective, and that if one company in a small economic industry suffers ill effects, then it will likely happen to the other companies in that industry. So, sector funds really only offer you a sliver’s worth of diversification, since all the stocks in that fund will come from the same sorts of companies.

Making Your Funds Grow

With the advantage of professional management, you’ll be able to see your sector mutual funds grow. Your portfolio manager will pick only the best performing mutual funds in the sector you decide on. If you’re really passionate about something, but you don’t want to risk betting all your cash on one horse, then sector funds are a sound way to put a little money towards something that truly interests you.

Risks Associated With Sector Mutual Funds

Of course, sector funds more often than not have more risks involved than you may expect at first – and they are a totally different animal and operate under different philosophies than other investments. Let’s look at a good example of this. Two of the top ten funds, according to Morningstar, come from the Natural Resource and Utilities sectors.

Before you put your money toward sector mutual funds – or any top performing mutual fund for that matter, you should review what that fund’s goals are, and it’s top holdings. Then you’ll have a firm grip of the concept and inner workings of the fund, and figure out if it will work for you.

Final Word on Sector Mutual Funds

Sector mutual funds might not be a core holding for your portfolio, but they do have their place, and can be a great investment if you can find the right niche for you. But, please keep in mind that sector mutual funds do carry a lot more risk than broadly diversified mutual funds – or mutual funds which address a wide array of sectors.

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5 comments - What do you think?  Posted by admin - May 16, 2010 at 1:55 am

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