3 Great Mutual Funds

When investing, consider these three great mutual funds. Mutual funds pool investors’ money to buy stocks from multiple different companies. By investing in one of these funds, you lesson your risk of losing money, because higher performing stocks often offset the losses of lower performing stocks. Since, a professional investor handpicks the stocks based on market knowledge, you often have a better chance of earning money with one of these managed funds, than if you select the stock on your own. However, stock market investments are inherently risky, and you can still lose money, even if you invest in one of these funds. Each of these mutual funds is geared toward a specific type of investor, with small cap funds being riskier than large cap funds, because they’re more volatile.

Small Cap Fund (Small Cap Fund)

Being a small cap fund, the Intrepid Small Cap Fund invests over 80 percent of their money into companies with a small median market capitalization. They won the “Lipper Fund Award” for two years in a row, and have a five-star Morningstar rating. The Intrepid Small Cap Fund is a value fund, meaning the investors select stocks based on the value of the company, rather than based on trends in the stock price. Managers specifically look for small companies that they determine are undervalued based on market analysis, meaning their stock price is low, relative to their performance. Some of the stocks that comprise a large part of the fund include Regis, Scholastic, and CSG Systems international. Despite the strong track record, investing in small cap funds poses a greater risk, because the stocks tend to be volatile and illiquid when compared with the stocks of larger companies, and you should only invest in this fund if you are willing to take a substantial risk for the possibility of a large reward. To start investing in the Intrepid Small Cap Fund, you need a minimum of $2,500.

Vanguard Mid-Cap Index Fund (Mid Cap Fund)

Vanguard’s mid-cap index fund focuses solely on domestic companies with mid-size market capitalization. “Money Magazine” selected the fund as one of the 70 best funds in which to invest, and Vanguard has a solid reputation as an investment firm. The Mid-Cap Index Fund is considered an aggressive fund, meaning that the fund is quite volatile, thus potential investors should be interested in taking risks, and willing to invest for a substantial length of time. Some of the top companies you’ll be investing in if you buy into this mutual fund include Netflix, Humana, and Green Mountain Coffee. The minimum amount required to invest in the Vanguard Mid-Cap Index Fund is $3,000.

Fidelity Blue Chip Growth Fund (Large Cap Fund)

Fidelity’s Blue Chip Growth Fund has an overall Four-Star Morningstar rating, and Fidelity is a longstanding and generally highly regarded investment institution. The fund focuses on investments in large, blue chip companies, meaning large, established businesses. These stocks have low volatility, and are a nice option for conservative investors who aren’t interested in taking significant financial risks, and are willing to make smaller long-term profits. Twenty-five percent of the money in this fund goes to the ten top company holdings, which include Oracle, Google, Apple, Halliburton, and McDonalds. To invest in Fidelity’s Blue Chip Growth Fund, you need to make an initial investment of $2,500.