Find the best stock fund and you’ve found the best mutual fund for 2013 and beyond. The best stock fund features good dividend income, growth, and lower risk than average in the stock category. Go with one of the largest and best fund companies and increase your returns by significantly lowering your cost of investing.
Even though the best mutual fund for folks who prefer less risk and good returns has been one that invests in bonds in recent years, the risk vs. profit potential now favors a well selected stock portfolio. Why? With interest rates near all-time lows, bond dividend yields are low and risk is higher than previous to 2012 and 2013.
The best stock fund to lower your risk would be labeled as LARGE STOCK VALUE, and would sport a dividend yield of about 3%… from one of the best fund companies. This offers the average investor better dividend income than all but the riskiest bond investments, as well as long term growth potential. It might also be labeled as LARGE-CAP EQUITY INCOME, and would hold stocks like Exxon, Microsoft, AT&T, and GE in its portfolio.
In order to get the best mutual fund you’ll need to go with one of the best fund companies. Why? Only the best companies can offer higher dividends and better net performance consistently. How do they do this? They offer low-cost investing: no sales charges and low yearly expenses. The two largest investment companies in America operate this way: Vanguard and Fidelity. Check them out on the internet and compare cost and performance in the stock (equity) category. Then search for your best mutual fund, the best stock fund, by comparing their dividend yields. Look for a yield of about 3%.
A higher dividend makes a stock investment a bit safer, because even in a bad market you have dividends working in your favor. If 2013 turns out to be a great year for the stock market, those labeled as large-cap value or equity-income will not be the best mutual fund in terms of performance, because they are relatively conservative in nature. On the other hand, if things get dicey in the markets these should be your best stock fund due to their conservative nature.
Keep in mind that NOTHING is normal in today’s economy or markets. Super low interest rates mean that truly safe investments pay record low returns (almost nothing), and bond investments become less attractive and riskier. That’s why the best mutual fund in 2013, for folks who want to earn higher dividend income with growth potential, is one that invests in high quality dividend-paying stocks. And remember, in your search for the best stock fund it always pays to go with one of the best fund companies. Low cost means higher returns in any market environment.