Investing in mutual funds can be an excellent way for beginners to start building their investment portfolios. With numerous mutual funds available, it can be overwhelming to choose the right one. In this article, we will review the top 10 best mutual funds for beginners, which can help simplify the investment process.
Table of Contents
Vanguard Total Stock Market Index Fund (VTSAX)
The Vanguard Total Stock Market Index Fund is a popular index fund that tracks the performance of the CRSP US Total Market Index. This fund provides investors with exposure to the entire U.S. stock market, making it an excellent option for beginners seeking a diversified investment option. The fund has a low expense ratio of 0.04% and has historically delivered strong returns.
Fidelity 500 Index Fund (FXAIX)
The Fidelity 500 Index Fund is an index fund that tracks the performance of the S&P 500 Index. This fund provides investors with exposure to 500 of the largest U.S. companies and has a low expense ratio of 0.015%. The fund has consistently outperformed its peers and is an excellent option for beginners seeking a low-cost, passive investment option.
T. Rowe Price Equity Index 500 Fund (PREIX)
The T. Rowe Price Equity Index 500 Fund is an index fund that tracks the performance of the S&P 500 Index. This fund provides investors with exposure to 500 of the largest U.S. companies and has a low expense ratio of 0.25%. The fund has a long history of strong returns and is an excellent option for beginners seeking a low-cost, diversified investment option.
Schwab Total Stock Market Index Fund (SWTSX)
The Schwab Total Stock Market Index Fund is an index fund that tracks the performance of the Dow Jones U.S. Total Stock Market Index. This fund provides investors with exposure to the entire U.S. stock market and has a low expense ratio of 0.03%. The fund has consistently outperformed its peers and is an excellent option for beginners seeking a low-cost, diversified investment option.
Vanguard 500 Index Fund (VFIAX)
The Vanguard 500 Index Fund is an index fund that tracks the performance of the S&P 500 Index. This fund provides investors with exposure to 500 of the largest U.S. companies and has a low expense ratio of 0.04%. The fund has consistently outperformed its peers and is an excellent option for beginners seeking a low-cost, passive investment option.
Fidelity ZERO Total Market Index Fund (FZROX)
The Fidelity ZERO Total Market Index Fund is an index fund that tracks the performance of the Fidelity U.S. Total Investable Market Index. This fund provides investors with exposure to the entire U.S. stock market and has a zero expense ratio. The fund is an excellent option for beginners seeking a low-cost, diversified investment option.
Vanguard Balanced Index Fund (VBIAX)
The Vanguard Balanced Index Fund is a balanced mutual fund that invests in a mix of stocks and bonds. The fund provides investors with exposure to both the U.S. stock market and the U.S. bond market, making it an excellent option for beginners seeking a diversified investment option. The fund has a low expense ratio of 0.07% and has historically delivered strong returns.
T. Rowe Price Retirement 2050 Fund (TRRMX)
The T. Rowe Price Retirement 2050 Fund is a target-date mutual fund that adjusts its asset allocation based on the investor’s retirement year. The fund invests in a mix of stocks and bonds, with the asset allocation becoming more conservative as the investor approaches retirement.
