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Best Mutual Funds Of 2005: Best Performing, Money Market And No Load Mutual Funds
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Published: August 21, 2007
Making an investment is like walking a tightrope. Done correctly, it can be an amazing and satisfying feat. However, rushing into the situation can lead to a big fall. As tightrope walking is a skilled art, there is an art for profitable investments. Making the right choice among the best mutual funds requires a lot of time and careful research.
Often, the best mutual funds for one year do not repeat a second year.
Before getting into detail about the aspects of the best mutual funds, it is important to first address the media's enormous input on investing. Every year, many magazines will claim to have the best performing mutual funds for that week, month or year. Chasing these headlines can be a costly game. It cannot be said enough: the past does not dictate the future.
Morningstar rated the best mutual funds of 2005. According to Morningstar, ProFunds UltraJapan Inv. was the best performing mutual fund of 2005 with an increase of 90.57%. Rounding out the top five best mutual funds were ING Russia A. in second with a 70.94% increase, Fidelity Advisor Korea A. third at 68.79%, Gartmore Global Natural Resources A. fourth with an increase of 65.48%, and Guinness Atkinson Global Energy in fifth with a 63.99% increase. These best mutual funds taught consumers there is a profitable market internationally and in the energy market. Looking ahead to 2006, only one fund returned to the top 10 best mutual funds. The ING Russia fund was ranked second among the best mutual funds in 2005 and sixth in 2006.
This lone repeat fund shows there is virtually no way to guarantee the best mutual funds in advance. In fact, chasing the trends of past performers is rarely encouraged. To show the past does not predict future growth, a study from FundAdvice.com tested the best performers from 1982-1991. During this 10 year span, the funds were up an average of 19.5%. From 1992 to 1996, these funds were up an average of 12.9%.
Though there is no guaranteed way to predict future revenues, there are several choices to weigh and arguments to be made for certain investments. One of the first options to consider is the type of mutual fund growth best for the investor's situation. While neither the mutual fund growth nor the dividend guarantees payment, they provide options for the investor. A dividend is a fund in which the profits are paid periodically to the investor. Funds are not guaranteed, but profits are given out to the investor in order to receive income on more frequent intervals.
For the person who does not need money as often, the growth system is the answer. In a growth fund, t
the profits are always put back into the mutual fund. This allows for a greater Net Asset Value (NAV). NAV is one way of assessing the value and performance of the best mutual funds. Because the growth is always put back into the fund, money is not paid out to the investor. Growth is the preferred method for strong, long-term funds.
The next decision is to choose between a loaded mutual fund and a no load mutual fund. Loaded mutual funds pay a sales commission; no load mutual funds do not. Studies have found over a long period of time, the funds are almost identical in return. Half of the 2006 best mutual funds were no load mutual funds. With all of the research materials available, there is no reason to pay someone else to choose a mutual fund. Choosing the best mutual funds can be easy with the right knowledge and determination.
The best mutual funds of 2005 are an example of the instability of the best mutual funds. The winners one year may be losers the next. With this in mind, research done for the best mutual funds can ease the delicate process. Mutual fund growth is based on two payout options, dividend and growth. After deciding on a payment interval, almost every investor should opt for a no load mutual fund. Selecting a fund personally will maximize the investor's profit among the best mutual funds.
Sources:
"The Best Mutual Fund Scheme for You." 10 May 2005. Rediff News. 10 Aug 2007. http://in.rediff.com/getahead/2005/may/10fund.htm.
Farrell, Paul. "No-loads beat 100 biggest load funds." Superstar Funds. 1 Sep 2000. CBSMarketWatch.com. 10 Aug 2007. http://www.marketwatch.com/News/Story/Story.aspx?g uid=%7B36479094%2D8018%2D11D4%2D81AA%2D00C04F3CAC1 />
"Fund Wars." FundAdvice.com. 26 Aug 1997. Merriman Berkman Next, Inc. 10 Aug 2007. http://www.fundadvice.com/fehtml/investingbasics/9 709.html.
Merriman, Paul. "Ten Reasons You Should Never Buy a Load Fund." FundAdvice.com. 25 April 1995.
Merriman Berkman Next, Inc. 10 Aug 2007. http://www.fundadvice.com/FEhtml/InvestingBasics/9 504b.html.
Woodard, Dustin. "Best Mutual Funds of 2005." About.com. 10 Aug 2007. http://mutualfunds.about.com/od/history/a/2005_bes t.htm.
Woodard, Dustin. "Best Mutual Funds of 2006." About.com. 10 Aug 2007. http://mutualfunds.about.com/od/history/a/2006.htm .
Before getting into detail about the aspects of the best mutual funds, it is important to first address the media's enormous input on investing. Every year, many magazines will claim to have the best performing mutual funds for that week, month or year. Chasing these headlines can be a costly game. It cannot be said enough: the past does not dictate the future.
Morningstar rated the best mutual funds of 2005. According to Morningstar, ProFunds UltraJapan Inv. was the best performing mutual fund of 2005 with an increase of 90.57%. Rounding out the top five best mutual funds were ING Russia A. in second with a 70.94% increase, Fidelity Advisor Korea A. third at 68.79%, Gartmore Global Natural Resources A. fourth with an increase of 65.48%, and Guinness Atkinson Global Energy in fifth with a 63.99% increase. These best mutual funds taught consumers there is a profitable market internationally and in the energy market. Looking ahead to 2006, only one fund returned to the top 10 best mutual funds. The ING Russia fund was ranked second among the best mutual funds in 2005 and sixth in 2006.
This lone repeat fund shows there is virtually no way to guarantee the best mutual funds in advance. In fact, chasing the trends of past performers is rarely encouraged. To show the past does not predict future growth, a study from FundAdvice.com tested the best performers from 1982-1991. During this 10 year span, the funds were up an average of 19.5%. From 1992 to 1996, these funds were up an average of 12.9%.
Though there is no guaranteed way to predict future revenues, there are several choices to weigh and arguments to be made for certain investments. One of the first options to consider is the type of mutual fund growth best for the investor's situation. While neither the mutual fund growth nor the dividend guarantees payment, they provide options for the investor. A dividend is a fund in which the profits are paid periodically to the investor. Funds are not guaranteed, but profits are given out to the investor in order to receive income on more frequent intervals.
For the person who does not need money as often, the growth system is the answer. In a growth fund, t
the profits are always put back into the mutual fund. This allows for a greater Net Asset Value (NAV). NAV is one way of assessing the value and performance of the best mutual funds. Because the growth is always put back into the fund, money is not paid out to the investor. Growth is the preferred method for strong, long-term funds.
The next decision is to choose between a loaded mutual fund and a no load mutual fund. Loaded mutual funds pay a sales commission; no load mutual funds do not. Studies have found over a long period of time, the funds are almost identical in return. Half of the 2006 best mutual funds were no load mutual funds. With all of the research materials available, there is no reason to pay someone else to choose a mutual fund. Choosing the best mutual funds can be easy with the right knowledge and determination.
The best mutual funds of 2005 are an example of the instability of the best mutual funds. The winners one year may be losers the next. With this in mind, research done for the best mutual funds can ease the delicate process. Mutual fund growth is based on two payout options, dividend and growth. After deciding on a payment interval, almost every investor should opt for a no load mutual fund. Selecting a fund personally will maximize the investor's profit among the best mutual funds.
Sources:
"The Best Mutual Fund Scheme for You." 10 May 2005. Rediff News. 10 Aug 2007. http://in.rediff.com/getahead/2005/may/10fund.htm.
Farrell, Paul. "No-loads beat 100 biggest load funds." Superstar Funds. 1 Sep 2000. CBSMarketWatch.com. 10 Aug 2007. http://www.marketwatch.com/News/Story/Story.aspx?g uid=%7B36479094%2D8018%2D11D4%2D81AA%2D00C04F3CAC1 />
"Fund Wars." FundAdvice.com. 26 Aug 1997. Merriman Berkman Next, Inc. 10 Aug 2007. http://www.fundadvice.com/fehtml/investingbasics/9 709.html.
Merriman, Paul. "Ten Reasons You Should Never Buy a Load Fund." FundAdvice.com. 25 April 1995.
Merriman Berkman Next, Inc. 10 Aug 2007. http://www.fundadvice.com/FEhtml/InvestingBasics/9 504b.html.
Woodard, Dustin. "Best Mutual Funds of 2005." About.com. 10 Aug 2007. http://mutualfunds.about.com/od/history/a/2005_bes t.htm.
Woodard, Dustin. "Best Mutual Funds of 2006." About.com. 10 Aug 2007. http://mutualfunds.about.com/od/history/a/2006.htm .
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