What Are The Best Mutual Funds To Invest In 2022

So just so we are all the same page, there are several types of mutual funds, but a mutual fund at its core is people that bring their money together and give it to a professional to invest it for them. It’s a bunch of money, to achieve a goal.

And the reason it was created in a way, was to solve the problem that, a lot of people are not going to put in all the work it takes to research a company and make sure it’s a good investment, so why not just invest money into a mutual, professionals have all the time, all the equipment to basically get it done.

And there have been funds with extraordinary records, like the Fidelity’s Magellan fund that In 1977-1990, the guy managing it Peter Lynch got a return of about 29% annually, if you had invested $1000 with him, he would have turned it into 27k and he grew the fund from 18million to over 14billion dollars. So obviously if you can find a profession to manage your money like this, wouldn’t it be a dream.

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1. The truth about Mutual Funds

First:

Did you know right now in the US we have about 2400 companies

Compared to over 7000 different type of mutual funds

They said mutual funds were invested so you didn’t have to worry about picking stocks, now you have to worry about picking the right mutual funds

Guess what, you index funds, exchange funds, reginal funds, municipals funds, hybrid and simple, the list goes on and on

Second:

The average mutual fund doesn’t outperform the S&P 500

For the last 72 years the s&p 500 has made about 11.19% including dividend

Most of them cant beat it consistently, plus whether they beat or don’t beat they still get paid

Third:

They usually charge you about 1-2%, this is called an expense ratio

But they get paid this no matter what

If you make lets say 8% with them, taxes take 1%, inflation 3%, and you have left 4%, and they take 2% of that, they effectly take half of what you made

2. What is the best Option

Keep it simple, the best mutual funds are passively managed ones

These are index funds, the difference between them and actively held ones is the following

The actively held ones, have managers that are trying to beat the market, so they constantly sell andbuy and that means taxes for you, and they also change you for this with a higher expense ration, while the other guys just sit and follow the market ( for this it usually cost less than .5%

So me personally:

I have about 100% of all my investing money in index funds or Etf that track indexes too

The difference is the ETFs are sold on the open market so the shares stay the same

While index funds, when you liquidate they have to pay your money in cash and they are traded on the Net Asset Value

3. What do you invest into exactly

First, I’ll tell you what I use to invest into ( i use to hold 7 mutual funds, all indexes of course )

But 2 of them were stupid investment ( they were LQD and SHY) these were corporate bonds and treasury bonds

They were terrible investment because for the last decades stocks have always outperform bonds, and even if I have a full stock portfolio and sell some stock for income, I’ll still be better off

So these are my 5 investments ( which honestly I have because its really well balance and keeps you more at ease )

S&P 500

Vanguard FTSE Developed Markets

Vanguard Small-Cap

Vanguard FTSE Emerging Markets

Vanguard Real Estate

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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