7 Best-Performing Mutual Funds for April 2024 - NerdWallet (2024)

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When shopping for mutual funds, we naturally are curious: Which ones are performing the best today?

While that’s a common place to begin your search, remember you’re shopping for tomorrow when looking for the best mutual funds. Top performers in the short term don’t always become long-term winners. The best mutual funds for your portfolio won’t necessarily be the best for your parents, your siblings or your neighbors.

» Looking to fund an IRA before tax day? See our picks for best IRA accounts.

Best-performing U.S. equity mutual funds

To determine the best mutual funds measured by five-year returns, we looked at U.S. equity funds open to new investors with low costs (expense ratios of 1% or less) and minimum investment requirements of $3,000 or less.

For more on how to choose a mutual fund, skip ahead to this section.

Ticker

Name

5-year return (%)

SSAQX

State Street US Core Equity Fund

16.88%

PBFDX

Payson Total Return

16.73%

FGRTX

Fidelity Mega Cap Stock

16.52%

STSEX

BlackRock Exchange BlackRock

16.27%

USBOX

Pear Tree Quality Ordinary

16.13%

FGLGX

Fidelity Series Large Cap Stock

16.08%

PRCOX

T. Rowe Price U.S. Equity Research

16%

Source: Morningstar. Data is current as of market close on March 29, 2024 and is for informational purposes only.

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How to choose the best mutual funds for you

Mutual funds combine investors' money to purchase investments. Mutual funds create a more diversified portfolio than most investors can on their own. "Mutual funds" as a category includes index funds, exchange-traded funds, bond funds and target-date funds. Mutual fund investors don’t personally own the stock or other investments held by the fund, but they do share equally in the profits or losses of the fund’s total holdings.

Many experts recommend investing through mutual funds, especially index funds, which passively track a market index such as the S&P 500. The mutual funds above are actively managed, which means they try to beat stock market performance — a strategy that often fails.

» Ready to invest? Here's our picks for best brokerages for mutual funds.

When you're ready to invest, here's what to consider:

  • Decide whether to invest in active or passive funds, knowing that both performance and costs often favor passive investing.

  • Understand and scrutinize fees. A broker that offers no-transaction-fee mutual funds can help cut costs.

  • Build and manage your portfolio, checking in on and rebalancing your mix of assets once a year.

» Learn more: How to invest in mutual funds

Average mutual fund return

Managing your portfolio also means managing your expectations, and different types of mutual funds should bring different expectations for returns.

For actively managed investments, particularly those with higher fees, it is difficult to consistently beat the index. In fact, it rarely happens. Most investors would be better served with a passive investment strategy. Some investors may be best served by a combination of exchange-traded funds and mutual funds that incorporate large, mid, and small cap stocks as well as international and emerging markets.

Depending on your risk tolerance, you may want to explore bond ETFs as well. But you should always do your homework to explore which investments will make the most sense for your portfolio.

Stock mutual funds = higher potential returns (or losses)

Stock mutual funds, also known as equity mutual funds, carry the highest potential rewards, but also higher inherent risks — and different categories of stock mutual funds carry different risks.

» Related: Best performing stocks this month

For example, the performance of large-cap high-growth funds is typically more volatile than, say, stock index funds that seek only to match the returns of a benchmark index like the S&P 500. (Learn more about stock mutual funds versus index funds.)

» Related: 25 best performing high-dividend ETFs

Bond mutual funds = lower returns (but lower risk)

Bond mutual funds, as the name suggests, invests in a range of bonds and provide a more stable rate of return than stock funds. As a result, potential average returns are lower.

Bond investors buy government and corporate debt for a set repayment period and interest rate. While no one can predict future stock market returns, bonds are considered a safer investment as governments and companies typically pay back their debt (unless either goes bust).

Money market mutual funds = lowest returns, lowest risk

These are fixed-income mutual funds that invest in top-quality, short-term debt. They are considered one of the safest investments you can make. Money market funds are used by investors who want to protect their retirement savings but still earn some interest — often between 1% and 3% a year. (Learn more about money market funds.)

Mutual fund fees

Even if you find a low-cost mutual fund, you'll still have to pay some fees. Here are some to look out for:

  • Management fees: Also known as "expense ratios," these cover the cost to pay fund managers and investment advisors.

  • 12b-1 fees: Capped at 1%, these fees pay for the cost of marketing and selling the fund and other shareholder services.

  • Other expenses: These may include custodial, legal, accounting, transfer agent expenses and other administrative costs.

The total annual fund operating expenses are expressed as a percentage of the fund's net average assets.

» How do fees impact returns? This mutual fund calculator can help

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7 Best-Performing Mutual Funds for April 2024 - NerdWallet (4)

Can you lose money in mutual funds?

Yes, as with all investments, it is possible to lose money in mutual funds. But if you invest in well-diversified mutual funds with a long investment timeframe, you'll likely benefit from compound interest and grow your money over time.

The bottom line

Chasing past performance may be a natural instinct, but it often isn't the right one when placing bets on your financial future. Mutual funds are the cornerstone of buy-and-hold and other retirement investment strategies.

Likewise, chasing one-year returns is not a wise investment strategy. It's a good rule of thumb to look for consistency of returns on a longer time horizon. It would be wise to look at the three, five, and 10 year returns to get a sense of a longer track record.

Hopping from stock to stock based on performance is a rear-view-mirror tactic that rarely leads to big profits. That's especially true with mutual funds, where each transaction may bring costs that erode any long-term gains.

What's important to consider is the role any mutual fund you buy will play in your total portfolio. Mutual funds are inherently diversified, as they invest in a collection of companies (rather than buying stock in just one). That diversity helps spread your risk.

You can create a smart, diversified portfolio with just a few well-chosen mutual funds or exchange-traded funds, plus annual check-ins to fine-tune your investment mix.

Frequently asked questions

Will I owe on taxes on mutual funds I own?

Not if you hold them in a tax-advantaged account like a 401(k). Otherwise, selling a mutual fund, or receiving a distribution from one, may generate tax liability. For more information, check out our article about taxes on mutual funds.

What's the difference between mutual funds and ETFs?

One difference is that mutual funds only change price once a day, while exchange-traded funds (ETFs) trade throughout the day like stocks. You can learn more about the differences between ETFs and mutual funds here.

Neither the author nor editor held positions in the aforementioned investments at the time of publication.

7 Best-Performing Mutual Funds for April 2024 - NerdWallet (2024)

FAQs

Which mutual fund is best for the next 5 years? ›

Top 10 Best Mutual Funds SIP to Invest In India
  • HDFC Mid-Cap Opportunities Fund.
  • Parag Parikh Flexi Cap Fund.
  • ICICI Pru Bluechip Fund.
  • HDFC Flexi Cap Fund.
  • Nippon India Small Cap Fund.
  • HDFC Balanced Advantage Fund.
  • ICICI Prudential Equity & Debt Fund.
  • ICICI Prudential Corporate Bond Fund.
Jul 30, 2024

What if I invest $5,000 in mutual funds for 5 years? ›

The SIP calculator will show that after investing Rs. 5,000 per month for 5 years at a 12% annual return, you will receive a final amount of Rs. 4,12,432. Be aware that the total amount you invested over 5 years is Rs. 3,00,000.

What are the best performing mutual fund? ›

Best-performing U.S. equity mutual funds
TickerName5-Year Return (%)
FSELXFidelity Select Semiconductors33.28
FCGSXFidelity Series Growth Company23.24
FSPTXFidelity Select Technology22.24
FDGRXFidelity Growth Company Fund22.01
4 more rows
5 days ago

What is the safest investment with the highest return? ›

Here are the best low-risk investments in July 2024:
  • High-yield savings accounts.
  • Money market funds.
  • Short-term certificates of deposit.
  • Series I savings bonds.
  • Treasury bills, notes, bonds and TIPS.
  • Corporate bonds.
  • Dividend-paying stocks.
  • Preferred stocks.
Jul 15, 2024

Which mutual fund is best in 2024? ›

5 best ELSS mutual funds in 2024 (August)
  • Motilal Oswal ELSS Tax Saver Fund – Direct Plan. ...
  • ITI ELSS Tax Saver Fund – Direct Plan. ...
  • SBI Long Term Equity Fund – Direct Plan. ...
  • Quant ELSS Tax Saver Fund – Direct Plan. ...
  • JM ELSS Tax Saver Fund – Direct Plan.
3 days ago

Which mutual fund has the highest return in the last 5 years? ›

Highest Return Mutual Funds in Last 5 Years
Fund Name3 Years Return5 Years Return
SBI Contra Fund (G)29.3%31.0%
Nippon India Growth Fund (G)29.1%30.9%
DSP India T I G E R Fund (G)36.1%30.8%
HDFC Mid Cap Opportunities Fund (G)30.4%30.5%
16 more rows

What is the 3 5 10 rule for mutual funds? ›

Specifically, a fund is prohibited from: acquiring more than 3% of a registered investment company's shares (the “3% Limit”); investing more than 5% of its assets in a single registered investment company (the “5% Limit”); or. investing more than 10% of its assets in registered investment companies (the “10% Limit”).

How to get 12 percent return on investment? ›

How To Get 12% Returns On Investment
  1. Stock Market (Dividend Stocks) Dividend stocks are shares of companies that regularly pay a portion of their profits to shareholders. ...
  2. Real Estate Investment Trusts (REITs) ...
  3. P2P Investing Platforms. ...
  4. High-Yield Bonds. ...
  5. Rental Property Investment. ...
  6. Way Forward.
Jul 20, 2023

What is the 4% rule for mutual funds? ›

The 4% rule says people should withdraw 4% of their retirement funds in the first year after retiring and take that dollar amount, adjusted for inflation, every year after. The rule seeks to establish a steady and safe income stream that will meet a retiree's current and future financial needs.

What is the best mutual fund for retirees? ›

Best retirement income funds
  • Vanguard LifeStrategy Income Fund (VASIX).
  • Vanguard Target Retirement Income Fund (VTINX).
  • Fidelity Freedom Index Income Fund Investor Class (FIKFX).
  • Schwab Monthly Income Fund Income Payout (SWLRX).
  • Schwab Monthly Income Fund Flexible Payout (SWKRX).

Which is the rank 1 mutual fund? ›

Top Mutual Fund Houses in India
S.No.Mutual Fund House
1.SBI Mutual Fund
2.ICICI Prudential Mutual Fund
3.HDFC Mutual Fund
4.Aditya Birla Sun Life Mutual Fund
6 more rows
Jul 24, 2024

Which mutual fund is doing good now? ›

List of Long Duration Duration Mutual Funds in India
Fund NameCategory1Y Returns
SBI Contra FundEquity48.1%
Quant Large and Mid Cap FundEquity58.0%
Bandhan Tax Advantage (ELSS) FundEquity16.8%
HDFC Focused 30 FundEquity40.5%
12 more rows

What is a good portfolio for a 70 year old? ›

At age 60–69, consider a moderate portfolio (60% stock, 35% bonds, 5% cash/cash investments); 70–79, moderately conservative (40% stock, 50% bonds, 10% cash/cash investments); 80 and above, conservative (20% stock, 50% bonds, 30% cash/cash investments).

Where can I get a guaranteed 5% return? ›

Government-issued treasury bills and short-term corporate borrowings are an ideal way to capture the best rates today. That's why T-bill and money market exchange-traded funds have yields these days at or just a bit higher than 5 per cent.

Where to get 10 percent return on investment? ›

Here are six investments that have, cumulatively, returned 10% or more in the past:
  • Growth Stocks. Growth stocks represent companies expected to grow at an above-average rate compared to other companies. ...
  • Real Estate. ...
  • Junk Bonds. ...
  • Index Funds and ETFs. ...
  • Options Trading. ...
  • Private Credit.
Jun 12, 2024

Which investment is best for the next 5 years? ›

Here are some of the top investment options for the best investment plan for 5 years:
  • Bank and Post Office Fixed Deposit (FD) ...
  • Recurring Deposit. ...
  • 5-Yrs National Savings Certificate. ...
  • Monthly Income Schemes. ...
  • Mutual Funds. ...
  • Equity Linked Savings Scheme. ...
  • Unit Linked Insurance Plan. ...
  • National Savings Certificate.
Mar 19, 2024

Which is the best stocks for next 5 years? ›

Top 10 Stocks to Buy for Long Term
  • Reliance Industries Limited. Tata Consultancy Services. ...
  • Reliance Industries Limited (RIL) ...
  • Tata Consultancy Services (TCS) ...
  • Infosys Limited. ...
  • HDFC Bank. ...
  • ITC Limited. ...
  • Hindustan Unilever Limited. ...
  • Asian Paints.
Jun 21, 2024

Which SIP gives the highest return in the last 5 years? ›

Equity Mutual Funds: SIP Performance in 5 years
  • Nippon India Small Cap Fund. ...
  • Quant Flexi Cap Fund. ...
  • Quant ELSS Tax Saver Fund. 1,428,661.33. ...
  • HSBC Small Cap Fund. 1,362,349.31. ...
  • SBI Contra Fund. 1,353,971.16. ...
  • Bank of India Small Cap Fund. 1,353,842.64. ...
  • Franklin India Smaller Cos Fund. 1,345,052.9. ...
  • HDFC Small Cap Fund. 1,343,394.33.
Feb 26, 2024

Which mutual fund is best for 7 years? ›

List of Long Duration Duration Mutual Funds in India
Fund NameCategoryRisk
SBI Long Term Equity FundEquityVery High
Bandhan Tax Advantage (ELSS) FundEquityVery High
Tata Small Cap FundEquityVery High
ICICI Prudential Large & Mid Cap FundEquityVery High
12 more rows

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