The 100 Best Mutual Funds for the Long Term

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Our wonderful country will remain in a recession for many more years; thus, no-load bond mutual funds are best for the next five years at least. For example, Metrolpolitan West Yield Fund, TCW High Yield Fund, Vanguard Corporate High Yield Fund and T. Rowe Price High Yield Bond Fund. Although we have the best country in the world, we are in great trouble due to the high unemployment and lack of trust of our government.

Lawrence V. Roth of MI 6:52AM October 07, 2010

I pulled all my clients out of the stock market a year and a half ago, into bond mutual funds paying 8% per year in managed accounts - all no-load funds.

Lawrence V. Roth, CPA of MI 8:46AM October 05, 2010

I have taken a look at two of the funds I own in my portfolio that are on this top list. The ten year average looks a lot like the rates in a passbook savings account. Investing directly in the stock market, I do better than the average fund manager. Yes, I need to do better, but a lot of average investors should evaluate the mutual fund mantra and figure out if investing in a balanced mix of stocks directly wouldn't ultimately be a better option.

toddinde of WI 11:22AM October 03, 2010

1. "Don't buy load funds." That had some meaning 30 years ago. Now it's actually used by no-load funds with high expense charges to lure investors into the false sense that they're "getting a deal" just by investing in a no-load found. Instead, go to Finra.org and run the numbers (you can compare 3 funds at a time). And don't be surprised to discover that some good load funds are actually cheaper than non-load funds.
2. "In the last 2 years 85% of managed funds failed to beat the market averages." That too is old news, and it's understated. The fact of the matter is that in the last 10 years 90% of the managed funds have failed to beat the market averages. Lesson: Go with low-expense index mutual funds and ETFs (Schwab now has some of both that are cheaper than Vanguard's) OR pick your own individual stocks OR pick some stocks AND a couple of index funds. (Finally, RE: "actively managed funds." Take note of population trends (is it growing?) and of people's basic needs. That's essentially what Yachtman does, and you can see the results in the rankings above.)
3. "Sell your bonds. Sell your stock." Forget about the "sell quote of the day" on Yahoo or CNBC. Distribute your investment among stocks, bonds, and "fixed" interest. If you want to have a "life" and not fret over money every day, put 33% in each.
Finally, millionaires and billionaires, who are best at investing their money in the right places at the right times, are the ones who should sell their holdings and invest them in the American marketplace, where they might actually do some good, helping with employment and the economy. If they stubbornly accumulate piles of capital and simply sit on it while it grows underneath them, the government (that's we the people) has no choice but to take it away. Taxes are not a penalty: they're our only option in a society that does not practice Christian charity (though we sure love to preach it).

Samuel Chell of WI 10:56AM October 01, 2010

Avoid all of these mutual funds. According to Merrill Lynch, approximately 85% of actively managed mutual funds failed to beat the relevant index in 2009 and 2010. I would suggest a portfolio with broad asset class exposure through ETFs and select Vanguard index funds.
Don't pay the 5.75% front end loads, 12b-1 fees, hidden marketing and back end sales charges for non-existent performance. A reasonably intelligent person does not need a financial advisor nor mutual funds.
Over a 10+ year time horizon, a balanced ETF portfolio will outperform any financial advisor/mutual fund combination out there.

J. Smith, CFA of NY 3:26AM September 30, 2010

Bond funds are a HORRIBLE investment idea right now. Bonds go down when interest rates go up, and with the Fed rate being near zero, there's no where for the rates to go other than up. If you're invested in bond funds, expect your investments to drop as soon as the Fed makes an announcement regarding interest rates. Also, we may very well be in a Bond and gold bubble.

Rassah of MD 3:29PM September 23, 2010

Our wonderful country is essentially 'bankrupt'! The Federal deficit is over three trillion dollars and the Dow should go down at least 3,000 points.
I pray I am wrong but it does not look like I am; thus, everyone should save as much as they can and stay 'liquid' not stocks just FDIC Insured savings and checking accounts for the next three years at least.

Lawrence V. Roth, CPA of MI 7:59AM September 18, 2010

President Obama announced that 100,000 combat soldiers are coming home from Iraq, then the Dow Jones goes up due to his announcement. BUT, they are returning to no jobs and will join the ranks of the unemployed. The Dow should go dowm another 3,000 points in my opinion. That's why I pulled out of the stock market into bond mutual funds long ago.
Lawrence V. Roth, CPA

Lawrence V. Roth of MI 6:44AM September 14, 2010