10 Mutual Funds That Tripled Wealth In 5 Years
Financing in mutual funds can be an excellent way to increase your wealth over time. There are thousands of mutual funds available, each with its own investment strategy, fees, and track record. But that can get confusing.
To help you make an informed decision, we have compiled a list of the ten best mutual funds that have tripled wealth in just five years. They make up the top 10 mutual fund returns of the last five years.
But before we dive into the list, let's quickly review mutual funds and how they work.
A mutual fund is a pool of money from many investors managed by a professional fund manager. The manager navigates the dynamic world of finance and carefully analyses market trends and economic indicators. The funds are then strategically allocated across a different range of aids so as to maximize the potential for lucrative returns and ensure the satisfaction of the investors.
The performance of a mutual fund is measured by its net asset value (NAV). NAV is a measure of the worth of all the assets in the fund such as stocks, bonds, and other investments minus any detriments the fund owes, separated by the total number of stakes overdue. Mutual fund returns are typically reported as the percentage change in NAV over a given period like one year, three years, or five years.
Now that we have a fair idea, let's take a look at the best ten mutual funds that have tripled wealth in just five years:
T. Rowe Price Chip Growth Fund (TRBCX)
The T. Rowe Price Chip Growth Fund has an impressive five-year return of 29.09%. With a low outlay ratio of just 0.70%, investors can rest assured that excessive fees won't erode their returns.
Mutual funds like these, which have a low minimum investment requirement of just $2,500, can be an attractive option for investors looking to elaborate their portfolio without breaking the bank. With this fund, investors can gain access to a well-diversified portfolio of caches, bonds, and other assets. It can help them mitigate risk and maximise long-term gains.
Fidelity Contrafund (FCNTX)
The Fidelity Contrafund has a five-year return of 25.08%. This fund invests in large-cap growth and value stocks, focusing on companies the fund manager believes are undervalued by the market. It has a low expenditure balance of 0.85% and a minimum investment of $2,500.
Vanguard Health Care Fund (VGHCX)
The Vanguard Health Care Fund has a five-year return of 21.95%. It finances businesses in the healthcare industry such as pharmaceuticals, biotechnology and medical equipment. The fund has a low expenditure ratio of 0.31% and a minimum investment of $3,000.
American Funds Growth Fund of America (AGTHX)
The American Funds Growth Fund of America has a five-year return of 21.61%. This fund invests in a mix of large-cap boost and value stocks and focuses on companies with growth potential and competitive advantages. The fund has a low expenditure balance of 0.63% and a minimum investment of $250.
Fidelity Growth Company Fund (FDGRX)
The Fidelity Growth Company Fund has a five-year return of 21.58%. This fund too focuses on companies with solid growth potential and competitive advantages and invests in large-cap growth stocks. It has a low outlay balance of 0.71% and a minimum investment of $2,500.
T. Rowe Price New Horizons Fund (PRNHX)
The T. Rowe Price New Horizons Fund has a five-year return of 21.22%. This fund invests in small-cap growth stocks with an emphasis on companies that have the potential to become large-cap companies in the future. It has a low outlay ratio of 0.80% and a minimum investment of $2,500.
Vanguard Small-Cap Growth Fund (VSGAX)
The Vanguard Small-Cap Growth Fund has a five-year return of 21.20% and invests in small-cap growth stockpiles. The fund has a low expense ratio of 0.7% and a minimum investment of $3,000.
T. Rowe Price Mid-Cap Growth Fund (RPMGX)
The T. Rowe Price Mid-Cap Growth Fund has a five-year return of 20.44%. This fund invests in mid-cap growth stocks and emphasises on companies which might become large-cap companies in the future. The fund has a low expenditure ratio of 0.85% and a minimum investment of $2,500.
Fidelity Blue Chip Growth Fund (FBGRX)
The Fidelity Blue Chip Growth Fund has a five-year return of 20.07% and invests in large-cap growth stocks. It has a low expenditure ratio of 0.8% and a minimum investment of $2,500.
Vanguard Information Technology Fund (VITAX)
The Vanguard Information Technology Fund has a five-year return of 19.46%. It invests in companies in the information technology sector such as software, hardware, and telecommunications. The fund has a low expense ratio of 0.1% and a minimum investment of $3,000.
We looked at some of the best mutual funds but you might still wonder,
Why Mutual Funds?
Well, financing in mutual funds provides a simple and effective way to build long-term wealth. It offers diversification, professional management and the potential for solid returns.
But it is essential to remember that past performance does not guarantee future results. Hence, it is crucial to analyse and consider factors such as the fund's investment strategy, fees, and risks before investing.
Additionally, a diversified portfolio that includes a mix of different types of investments likes bonds, stockpiles, and real estate cannot be negotiated. This helps reduce the overall risk of your portfolio and increases returns over the long term.
These are the top 10 mutual funds that have tripled wealth in five years. Every one of them has a strong track record of performance and low fees, making them attractive options for long-term investors. However, it is essential to remember that investing always carries risk, and you must analyse and consider your financial situation before making any decisions.
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The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved