Mutual funds have long been a popular investment option for both novice and experienced investors. A mutual fund is a pool of money from many investors that is managed by a professional fund manager. The fund manager invests the money in a variety of stocks, bonds, and other securities, with the goal of achieving a high rate of return. In this article, we will take a look at the top-performing mutual funds of the year.
Before we dive into the specifics, it’s important to note that past performance is not a guarantee of future returns. The mutual funds we will discuss have had strong performance over the past year, but there is no guarantee that this will continue in the future. It’s also worth mentioning that mutual funds come with various fees and expenses that can eat into your returns. It’s important to do your due diligence and research a fund’s expenses before investing.
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Baillie Gifford American Fund
The Baillie Gifford American Fund is a mutual fund that invests in a diversified portfolio of US stocks. The fund has had a stellar performance over the past year, with a return of over 48%. The fund’s top holdings include Tesla, Amazon, and Shopify. The fund has an expense ratio of 0.53%, which is relatively low compared to other actively managed mutual funds.
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Fidelity China Consumer Fund
The Fidelity China Consumer Fund is a mutual fund that invests in companies that operate in the Chinese consumer sector. This includes companies that manufacture and sell consumer goods, as well as those that provide services to Chinese consumers. The fund has had an impressive performance over the past year, with a return of over 63%. The fund’s top holdings include Alibaba Group, JD.com, and Maiduan Damping. The fund has an expense ratio of 1.16%.
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Baillie Gifford Global Discovery Fund
The Baillie Gifford Global Discovery Fund is a mutual fund that invests in companies that are expected to experience significant growth in the future. The fund’s investment strategy is focused on identifying companies that are disrupting traditional industries or creating entirely new ones. The fund has had a strong performance over the past year, with a return of over 58%. The fund’s top holdings include Zoom Video Communications, Shopify, and Tesla. The fund has an expense ratio of 0.76%.
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Polar Capital Technology Trust
The Polar Capital Technology Trust is a mutual fund that invests in technology companies around the world. The fund has had an impressive performance over the past year, with a return of over 60%. The fund’s top holdings include Microsoft, Amazon, and Alphabet (Google). The fund has an expense ratio of 0.94%.
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Lindsell Train Global Equity Fund
The Lindsell Train Global Equity Fund is a mutual fund that invests in a concentrated portfolio of high-quality global companies. The fund’s investment strategy is focused on investing in companies with strong brands, high barriers to entry, and sustainable competitive advantages. The fund has had a strong performance over the past year, with a return of over 36%. The fund’s top holdings include Unilever, Heineken, and PayPal. The fund has an expense ratio of 0.74%.
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BlackRock World Mining Trust
The BlackRock World Mining Trust is a mutual fund that invests in companies that are involved in mining and extracting natural resources. The fund has had a strong performance over the past year, with a return of over 60%. The fund’s top holdings include BHP Billiton, Rio Tinto, and Vale. The fund has an expense ratio of 1.07%.
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Baillie Gifford Long Term Global Growth Investment Fund
The Baillie Gifford Long Term Global Growth Investment Fund is a mutual fund that invests in companies that are expected to experience significant growth over the long term. The fund’s investment strategy is focused on identifying companies with innovative business models, strong management teams, and a sustainable competitive advantage. The fund has had a strong performance over the past year, with a return of over 49%. The fund’s top holdings include Tesla, Tencent, and Amazon. The fund has an expense ratio of 0.56%
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Legal & General US Index Fund
The Legal & General US Index Fund is a mutual fund that tracks the performance of the S&P 500 Index, which is a market-capitalization-weighted index of 500 large-cap US stocks. The fund has had a strong performance over the past year, with a return of over 32%. The fund’s top holdings include Apple, Microsoft, and Amazon. The fund has an expense ratio of 0.10%, which is very low compared to other mutual funds.
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L&G Japan Index Fund
The L&G Japan Index Fund is a mutual fund that tracks the performance of the FTSE Japan Index, which is a market-capitalization-weighted index of Japanese stocks. The fund has had a strong performance over the past year, with a return of over 30%. The fund’s top holdings include Toyota Motor, Sony, and Softbank Group. The fund has an expense ratio of 0.10%.
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BMO Responsible Global Equity Fund
The BMO Responsible Global Equity Fund is a mutual fund that invests in companies that demonstrate strong environmental, social, and governance (ESG) practices. The fund’s investment strategy is focused on investing in companies that are expected to generate long-term value for shareholders while also making a positive impact on society and the environment. The fund has had a strong performance over the past year, with a return of over 31%. The fund’s top holdings include Microsoft, Nestle, and Roche. The fund has an expense ratio of 0.98%.
these top-performing mutual funds have had strong performance over the past year, but it’s important to remember that past performance is not a guarantee of future returns. It’s also important to remember that investing involves risk and that you should always consult with a financial advisor before making any investment decisions.
When considering investing in mutual funds, it’s important to take into account the fund’s investment strategy, fees, and expenses. Actively managed mutual funds typically have higher fees than passively managed index funds, which can eat into your returns over time. However, actively managed funds can offer the potential for higher returns if the fund manager is able to outperform the market.
Passively managed index funds, on the other hand, typically have lower fees and track the performance of a specific index, such as the S&P 500 or FTSE Japan Index. These funds can be a good option for investors who want to achieve broad market exposure and diversification at a low cost.
It’s also important to consider the risks associated with investing in mutual funds. While mutual funds offer the potential for higher returns, they also come with the risk of loss. Investors should be aware of the risks associated with the underlying securities in the fund’s portfolio, as
Conclusion
These mutual funds have had strong performance over the past year, but it’s important to remember that past performance is not a guarantee of future returns. Investing in mutual funds can be a great way to diversify your portfolio and potentially achieve higher returns, but it’s important to do your due diligence and research a fund’s expenses before investing. It’s also important to remember that investing involves risk, and you should always consult with a financial advisor before making any investment decisions.
