5 Great Mutual Funds To Consider In 2018

As you settle into the first quarter of the year, it’s time to revisit and rebalance your investor portfolio. There’s no doubt that picking the right investments is challenging with our society of ever-fluctuating business cycles and ever-changing politics. However, no investor ever made money by sitting on the sidelines.

The key to picking great investments is to do your research, study past performance of potential investments, gauge the risk and likelihood of a positive return and invest according to your risk profile.

With that being said, we wanted to make the research a bit easier for you. Here are five great mutual funds to consider in 2018.

1. Vanguard 500 Index Fund (VFINX)

  • Type: Broad Index
  • Minimum Investment: $3,000
  • Expenses: 0.14 percent or $14 annually for every $10,000 invested

Vanguard has a solid portfolio of mutual funds. Vanguard is also one of the best known mutual funds around. VFINX primarily holds U.S. large cap stocks like those found in the S&P 500 index. This means that when large, well-known companies such as Google and Apple do well, so will your investments. Invest in this mutual fund if you want to invest in the stability of large U.S. stocks.

2. Fidelity Nasdaq Composite Index Fund (FNCMX)

  • Type: Broad Index
  • Minimum Investment: $2,500
  • Expenses: 0.30 percent

If you want to take a riskier approach in 2018 for the sake of higher potential returns, consider this mutual fund. FNCMX holds many U.S. large cap stocks found in the S&P 500 index fund just like VFINX. However, this fund is much more heavily concentrated in technology companies such as Amazon and Facebook with eight tech stocks holding about 30 percent of the fund.

3. Vanguard Health Care (VGHCX)

  • Type: Sector (Healthcare)
  • Minimum Investment: $3,000
  • Expenses: 0.37 percent

Despite the politics around healthcare, healthcare is not going anywhere and is still a great place to invest. If you want to invest in established healthcare companies such as Bristol-Myers Squibb Company, Merck & Co. and Eli Lilly and Company, then invest in this fund.

4. Fidelity Select Banking (FSRBX)

  • Type: Industry (Banking)
  • Minimum Investment: $2,500
  • Expenses: 79 percent

Financial stocks are still a very viable option for investors in 2018. If you’re interested in investing in Wall Street but in a safe way, consider this mutual fund. Some of the top stocks in this mutual fund are Bank of America Corporation, U.S. Bancorp, and Wells Fargo & Co.

5. Hussman Strategic Total Return Fund (HSTRX)

  • Type: Tactical Allocation
  • Minimum Investment: $1,000
  • Expenses: 0.84 percent

For those more risk-averse investors that still want to beat inflation, this may be the perfect mutual fund for you to invest into. The reason why this mutual fund may be a bit safer is because its holdings were about 65 percent bonds, 20 percent cash and barely anything in stocks, based on its most recently released data.

A great investor always takes the time to revisit, reevaluate and rebalance their holdings in the stock market. Whether you’re looking to be a bit more risky with your investments or more conservative, there’s a mutual fund that’s perfect for your portfolio.