Top Best Performer Domestic Stock Mutual Fund of 2010

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Intro

With the year 2010 is near its end, I always like to check the Best Performer Domestic Stock Mutual Funds or Equity Mutual Fund list for year 2010. The mutual fund list primarily consists of domestic stocks and international stocks. I’ll include the bond fund list in my next article. This article will provide the Best Performer Domestic Stock Mutual Funds.

Mutual Funds are well known to many long term investors in brokerage account or retirement account such as 401k or IRA. Mutual funds come with lower risks due to diversification in many different company stocks. Equity mutual fund will invest in different companies, sectors and even across market capitalization levels whether they are large capitalization, mid capitalization and small cap companies. Even if one or two sectors or companies don’t do well, others will balance out the overall performance.

By investing in Mutual Funds, an investor and a trader get to choose a fund manager who is an expert and a professional in choosing which stocks to invest in or switch. And this comes at a small cost. It ensures you do not have to worry about the market movements, follow economic trends and data and other news that can affect the market.


Invest in Mutual Funds

Good fund managers produce that alpha, which makes his role (and the charges) worthwhile. Fund managers differ in style of functioning. Some invest the portfolios aggressively, while others may choose a buy and hold strategy similar to Warren Buffet’s style.

Liquidity is another advantage for Mutual Funds. There are many who have invested in one of the new initial public offerings (IPOs) or shares that are no longer trading now. When there are just no buyers for these equity shares at any price, the investor faces a huge loss on this individual stock. That is where Mutual Funds provide the benefit. If you want to sell, the fund will redeem the units for you. Illiquid shares or market conditions are the fund problem, not yours.

Mutual Funds allow one to invest in amounts as low as $1,000. Regular monthly investments can become a way of life if one adopts the systematic investment plans or cost average plan that lets you invest as little as $100 per month. This kind of method also will decrease the market timing risk. This is called the dollar cost averaging concept.

The vast products of mutual funds are suited for all kinds of investors. There are all kinds of funds, large-cap, small-cap, hybrid or balanced, specialty and fixed income or bond. In the latter, there are ultra short-term funds, Long term funds, emerging bond funds, money market funds, income funds, Treasury inflation protection Securities fund (TIPS) and others.


Selection Criteria

I always use the following four criteria when I filtered the best performing mutual funds. The four criteria of choosing best performing mutual fund for 2010 are:

  1. The % Year To Date (YTD) return is the highest in its own class.
  2. The fund total asset is more than 1 billion
  3. It has Morningstar Rating of 3 stars or more
  4. It is not part of leveraged or bear fund

Note: Some of these funds may have a sales load (Front End Sales Load or Deferred Sales Load), please try to find other classes which don’t have a sales load or max 12b1 fee.

Top Performer Domestic Stock Mutual Funds of 2010 are:

  • Large value - Fairholme
  • Large Blend - Gabelli Asset Fund
  • Large Growth - Morgan Stanley Focus Growth A
  • Mid Cap value - RidgeWorth Mid-Cap Value Equity A
  • Mid Cap Blend - Fidelity Spartan Extended Market Index
  • Mid Cap Growth - Waddell & Reed New Concepts A
  • Small Cap value - Invesco Van Kampen SmallCapValue Y
  • Small Cap blend - T. Rowe Price Small-Cap Stock
  • Small Cap Growth - Lord Abbett Developing Growth A
  • Real Estate - First American Real Estate Secs A
  • Equity Precious Metal - Oppenheimer Gold & Special Minerals A


Top Performer Domestic Equity Mutual Fund of 2010

(click column header to sort results)
Fund Description  
Ticker  
Category  
Expense Ratio  
M* Rating  
YTD  
Min Invest  
Fairholme
FAIRX
Large value
1.00%
5
22.81%
$10,000
Gabelli Asset Fund
Gatax
Large Blend
1.40%
4
23.37%
$1,000
Morgan Stanley Focus Growth
AMOAX
Large Growth
1.12%
3
27.71%
$1,000
RidgeWorth Mid-Cap Value Equity A
SAMVX
Mid Cap value
1.32%
4
27.66%
$2,000
Fidelity Spartan Extended Market Index
FSEMX
Mid Cap Blend
0.10%
3
28.68%
$10,000
Waddell & Reed New Concepts A
UNECX
Mid Cap Growth
1.47%
4
33.04%
$500
Invesco Van Kampen SmallCapValue Y
DFSVX
Small Cap Value
1.00%
5
30.69%
$1,000
T. Rowe Price Small-Cap Stock
OTCFX
Small Cap Blend
0.95%
3
33.11%
$2,500
Lord Abbett Developing Growth A
LAGWX
Small Cap Growth
1.14%
4
37.69%
$1,000
First American Real Estate Secs A
FREAX
Real Estate
1.27%
5
28.03%
$2,500
Oppenheimer Gold & Special Minerals A
OPGSX
Equity Precious Metal
1.12%
3
49.64%
$1,000
all information as updated as 12-26-2010

How to buy or sell these mutual funds

Usually you will need mutual fund providers as well as brokerage or retirement account (401k account) to buy these mutual funds. Please check the following brokerage/ providers:

  • Fidelity – one stop shop for mutual fund or ETF as well as cash management banking
  • Vanguard – offer various mutual funds that track indexes as well as ETF for free
  • Scottrade – Offer various mutual funds. There are 3,000 No load & No Transaction Fees (NTF) fund for free and 15,000 mutual funds as well as trading account for $7.00 per trade. You can buy the American Fund family for free and please select no load fund.
  • Firstrade – Offer mutual funds for $9.99 per trade for no load funds.

Disclosure: I have no affiliation with any of these funds. I also have no position in any of these funds currently. Please do your own research for additional details. Please trade and invest responsibly. Past Performance is No Guarantee of Future Results.


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Comments 3 comments

LillyGrillzit profile image

LillyGrillzit 5 years ago from The River Valley, Arkansas

Very professional, doing a year end summary on these and showing performance is excellent. What a resource you have created. Happy New Year 2011 and beyond.


chan0512 profile image

chan0512 5 years ago from Camarillo, CA Author

Thanks Lilly! I'll provide more about the top performer mutual funds. This list is usually hidden and no one really provide the complete list about these mutual funds.


Rachael 22 months ago

First, I would make sure you have at least 3 months slraay saved up in the bank or in a money market fund for an emergency fund. Financial disasters like getting layed off or sick happen to all of us.Second, I would pay off all high interest debt. Pay off everything you can except the house mortgageand student loans. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay.Third, if you have money left, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be. Investing in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work.Believing someone you met over the Internet and know nothing about is risky. Read these websites for further information.

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