Best Mutual Funds

Best Mutual Funds
For those who do not have an in depth knowledge of stocks but would like to start investing, finding the best mutual funds are a great way to get started as they allow you to diversify your investment and thereby reduce your risk. Some of the best mutual funds are typically managed by a financial advisory board that use funds pooled from a group of investors to invest in short term investments like stocks, bonds or securities depending on which fund you choose.

For those who do not have an in depth knowledge of stocks but would like to start investing, finding the best mutual funds are a great way to get started as they allow you to diversify your investment and thereby reduce your risk. Some of the best mutual funds are typically managed by a financial advisory board that use funds pooled from a group of investors to invest in short term investments like stocks, bonds or securities depending on which fund you choose.

While you want to be able to find the best mutual funds to invest your money in, what may have been the best in previous years may not be so today. It’s also important to keep up with current trends and to thoroughly do your research behind each company and its board of advisors. If possible, consult a financial advisor for further mutual fund advice and how to invest.

When choosing the best mutual funds, be sure that it has income-dividend potential. Choosing the right mutual funds can provide you with a steady cash flow either through dividends or bond interest payments.

Another factor to consider is to find funds that have the potential to perform well in future years to come. This entails being able to effectively identify trends. One trend that has seen explosive growth in recent years is the movement towards being green and eco-friendly. Here are five of the best mutual funds for 2009 based on the research of performance, stability and income potential.

1. American Century High Yield Fund (AHYVX)

With the current economic crisis, one of the best ways to make money is to find mutual funds with a stated income. This includes those with high dividend yield and bond interest payments. The American Century High Yield Fund has a much larger dividend yield than most typical mutual funds or stocks.

2. Franklin Gold & Precious Metals (FKRCX)

The FKRCX mutual fund has been one of the top performances with a 10-year return on investment of 14.42% with a dividend yield of 8.34%. Gold has been a fairly stable investment for investors.

3. The New Alternatives Fund (NALFX)

This mutual fund has investments in renewable energy sources that are also concerned with environmental production and energy conservation. Over the next couple of years, energy stocks are likely to see explosive growth as our country moves towards a greener friendly environment.

4. Vanguard Energy Fund (VGENX)

Although prices of energy commodities have reached its peak in earlier years, oil prices are likely to raise again. The VGENX fund has seen a 10-year annualized return of 14.81%. This is exactly the kind of mutual that is positioned to perform well.

5. ING Corporate Leaders Trust Fund (LEXCX)

Though this fund has had a poor annualized return due to the recent stock market downturn, this mutual fund has consistently outperformed the S&P500 by 10% over the past year. In addition, it also has a divided yield of 2.46%.

Keep in mind that these mutual fund picks are only recommendations. It is important that you always do your research first into which fund is the best investment for your situation and why. While these may be good choices now, they may not be great investment choices in later years. Prior to investing, it is essential to gather as much mutual funds information as possible.
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