Although the past performance of a particular fund is no guarantee for future performance, it is wise to base one’s investment decisions on funds that have historically performed well. The following Mutual Funds have been identified as some of the top mutual funds to buy in 2012, based on these funds’ three years of risk and return data.
Funds that have a higher-than-average risk-adjusted performance are normally rated as ‘A’ or ‘B’, and should be considered for purchase. Funds that need to be retained are rated as ‘C’, and those that have underperformed and need to be sold are rated as ‘D’ and ‘E’ in most analysis reports.
Permanent Portfolio Fund
The Permanent Portfolio Fund comes with an overall rating of ‘A+’ and is an excellent fund to buy. It has maintained this rating from December 2007. This fund has sought to preserve as well as increase its shares’ purchasing power value over the long term.
The Permanent Portfolio Fund invests in a variety of different assets like gold, silver, Swiss franc assets, short-term corporate bonds, stocks of US companies, stocks of foreign real estate and natural resources companies, and dollar assets like the US Treasury securities.
The fund may invest in small or mid-capitalization companies. A minimum of 60% of its investment in aggressive growth stocks are normally in securities listed on the NYSE.
Another overall rated fund is the Bruce Fund, with a rating of ‘A+’ for 10 out of 11 months. Long term capital appreciation is the main objective of this fund. It strives to achieve it by investing mainly in domestic common stocks and bonds. Bruce Fund invests in stocks of any capitalization and also invests in foreign securities. It is a no-load fund with a 0.82 % expense ratio.
There are a number of other funds that are highly recommended as well. ING Morgan Stanley Global Franch A is a fund that has a rating of ‘A+’. Wells Fargo CoreBuilder Shs - Srs M, Morgan Stanley Inst Advantage H, Robeco Boston Ptrs Lg/Sh Equit Inv, SunAmerica Foc Div Strategy A, and Sit MN Tax Free Income SMTFX also have a rating of ‘A+’.
Other Top Mutual Funds for 2012
Other funds with an ‘A+’ rating but with a higher risk level include the:
- Yacktman Fund,
- Yacktman Focused Fund,
- Hennessy Cornerstone Val Original,
- ProFunds-Nasdaq-100 Svc,
- Invesco Small Companies A,
- GMO US Growth Fund III,
- Invesco Global Real Estate Inc A,
- MSIF Inc Global Franchise P,
- Matthew 25 Fund,
- Oppenheimer Limited Term Muni A,
- ProFunds-Consumer Goods Ultra Svc,
- Wasatch World Innovators Investor,
- Delaware Select 20 Port, and
- NASDAQ-100 Index Direct.
Find here the 20 top-rated mutual funds according to The Street.
And find here the 10 best mutual funds for 2012 according to CNBC.
Make sure you do not mis our other articles on how to buy mutual funds.
What are your favorite top mutual funds to buy in 2012?