The 100 Best Mutual Funds for the Long Term

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The majority of these funds have pretty low returns over the past 3 or 5 years. They barely beat inflation. The ZillionZ fund has average annual returns of 17%. What are your criteria for picking these particular funds?

Joe Peagler of GA 12:40PM December 06, 2011

Perhaps one mutual fund adivsor in a thousand can consistently (over 10+ years) beat the market (and that one guy, Warren, is close to retirement). Even then, it is probably primarily luck (line up a thousand guys and have them flip coins, one of them is likely to flip 10 heads in a row - that hardly makes him a coin flipping "expert", just a lucky b*****d). To beat the Vanguard funds, it means earning 0.50% to >1.25% more each year than the low cost Vanguard funds, year after year (after year). After ~10 years, the odds of that becomes almost zero. Why give a large portion of your money to someone that is very, very (very, very) unlikely to compensate you for that money. If you want to gamble with your retirement funds, take that ~0.5% each year and buy lottery tickets. The odds of making big bucks is about the same (and, for most people, it is a lot more fun).

Bill of IL 2:47PM June 30, 2011

But wait there's more! You also pay a 1.00% sales load! And 48% annual turnover? Gotta love those taxes and transaction costs!
Sounds more like Bernie Madoff's early retirement fund to me.

Suze's Snap On Financial Tools of KY 11:02AM May 29, 2011

When you put money into the stock market, write down on a piece of paper and put it on the wall. And what you write on it is how much you will allow your investment to drop in value before you pull the plug and get out of it. What happens is that if does go down, you will become reluctant to pull out. It is psychology, it is how the mind works, it is how people think. It is very tough to do. But chances are, if you lose less, you will eventually make more. And always be aware that mutual funds are not money managers. Mutual funds will always stay invested even if it it is dumb. You are the one who has to make the decision to pull out.

Roberta Toyou of TX 3:28PM May 14, 2011

I prefer ETF's .I think mutual funds are way past thier time.But,if is the only thing you know how to invest in it is better than nothing at all.

Mad Man 8:52AM April 27, 2011

With expense ratios as high as most of these, thy better make some serious $$$$. I agree with Suze's Tube... this is clearly product placement, not real research!

MF Buyer of FL 4:12PM April 05, 2011

i passed

Stu Goldman of CT 3:45PM March 29, 2011

And you definitely want one that's "above average".

CHRISTINE of CA 2:06AM March 27, 2011

A 2.15% expense ratio? On the Prudential Jennison EQUITY INCOME fund? HAHAHAHAHAHAHA! And 1.37% for Valley Forge? That's the Swap-Quant Bernake Commemorative Gold Coin Fund, right? HAHAHAHAHAHAHA! I think someone just swapped me in the quant! HAHAHAHAHAHAHA! The last time I saw expense ratios that high I almost fell off my dinosaur. HAHAHAHAHAHAHA! Not to be rude, but those funds must have paid you a bazillion buckos for product placement.

Suze's Tube of of KY 1:44AM March 27, 2011