Investing in mutual funds is a more relaxed way of participating in the financial markets as the investment choices are made by professionals and therefore you do not have to be concerned about your personal picks in financial assets. Making your own investments in any financial asset class can be a daunting and stressful task. How do you find the best mutual funds to invest in July?
The answer can be as simple as possible by thinking that investing is mostly targeting the long run, not the short-term volatile price swings. For instance, investing in equities is becoming a shareholder of companies on an ongoing concern not just for a few months.
In this article, the seven best mutual funds to buy in July 2022 have been chosen based on their long-term return, a positive 20-year return. These mutual funds have a track history of many years proving they can generate profits and probably will continue doing so in the future.
|NASDX||Shelton Funds – Nasdaq-100 Index Fund||$26.09|
|FDGRX||Fidelity Growth Company Fund||$24.88|
|FOCPX||Fidelity OTC Portfolio||$13.68|
|VHIAX||JPMorgan Growth Advantage Fund Class A||$22.88|
|AMAGX||Amana Mutual Funds Trust Growth Fund Investor||$56.35|
|VHCOX||Vanguard Capital Opportunity Fund Investor Shares||$67.96|
|PRWAX||T.Rowe Price All-Cap Opportunities Fund||$52.86|
Shelton Funds – Nasdaq-100 Index Fund (NASDX)
Shelton Funds – Nasdaq-100 Index Fund (NASDAQ:NASDX) has the investment objective of replicating the performance of the largest non-financial companies in the Nasdaq-100 Index.
The fund has a 5-star rating by Morningstar and its investments include a selection of the largest domestic and international non-financial companies listed on the Nasdaq stock market.
The fund aims at having a high correlation with the index and has a net expense ratio of 0.5%. As of March 31, 2022, the fund had net assets of $1,204.5 million and among its top 10 holdings were Apple (NASDAQ:AAPL) with a weight of 12.64% of the portfolio, Microsoft (NASDAQ:MSFT) with a weight of 10.9% and Amazon (NASDAQ:AMZN) with a weight of 6.13%.
The Technology sector had the largest weight of 46.72%, followed by the Communications sector with a weight of 26.87%. The 10-year return of the fund is 19.04% and the 20-year return is 12.87%.
Fidelity Growth Company Fund (FDGRX)
Fidelity Growth Company Fund (NASDAQ:FDGRX) aims at capital appreciation and invests in companies that are either domestic or international having the potential for above-average growth. Growth is measured by popular financial metrics like earnings and revenue.
The fund has a net expense ratio of 0.79% and a 5-star rating from Morningstar. As of March 31, 2022, some of the top holdings were Apple (NASDAQ:AAPL), NVIDIA (NASDAQ:NVDA), and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG).
The 20-year return of the fund is 12.8% and the average annual returns for five years and 10 years are +15.83% and +16.67% respectively.
Fidelity OTC Portfolio (FOCPX)
Fidelity OTC Portfolio (NASDAQ:FOCPX) is a fund that seeks capital appreciation by investing in equities either trading on Nasdaq or over-the-counter market. The companies may be either small or medium size, they could be either growth or value stocks and there is a goal of investing more than 25% of the portfolio in the technology sector.
The fund has a net expense ratio of 0.8% and a 20 year return of 12.7%. Among the top 10 holdings, there are companies like Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), and Meta Platforms (NASDAQ:META).
The average five-year and 10-year returns are 13.85% and 17% respectively.
JPMorgan Growth Advantage Fund Class A (VHIAX)
JPMorgan Growth Advantage Fund Class A (NASDAQ:VHIAX) has a 5-star Morningstar rating and invests in high-growth companies that have different market capitalizations, in other words, large-cap, mid-cap, or small-cap firms.
The goal is to invest in “leading competitive positions, durable business models and management that can achieve sustained growth” which overall seems a very effective and balanced investment strategy.
The fund has a net expense ratio of 1.04% and as of May 31, 2022, had 85 holdings. Among the top 10 holdings were Tesla (NASDAQ:TSLA), Mastercard (NYSE:MA), and Home Depot (NYSE:HD). The largest weight in the fund had the Information Technology sector at 38.4%, followed by Consumer Discretionary at 16.7%.
The 20-year performance is 12.16% while the cumulative returns as of May 31, 2022, for five years and 10 years were 17.29% and 16.94% respectively.
Amana Mutual Funds Trust Growth Fund Investor (AMAGX)
Amana Mutual Funds Trust Growth Fund Investor (NASDAQ:AMAGX) is a fund with an emphasis on ESG (environmental, social, and governance) factors.
The fund excluded companies that operate in tobacco, gambling, or weapons industries making investments across industries to achieve diversification. Notably, the investments follow Islamic principles and the goal is to achieve long-term capital growth.
The Technology sector had the largest weight of 40.6%, followed by Health Care at 19.4%. The total annual fund operating expenses are 0.95%.
The 20-year return is 11.82% and the average annual total returns for the 5-years and 10-years are 17.15% and 14.98% respectively.
Vanguard Capital Opportunity Fund Investor Shares (VHCOX)
Vanguard Capital Opportunity Fund Investor Shares (NASDAQ:VHCOX) is a fund that has an active management style and is also an aggressive growth fund investing in companies that have various market capitalizations. The assets class is domestic stocks and there is a defined primary interest in certain sectors such as information technology and health care.
The expense ratio is 0.43% and the 20-year performance is 11.72%. The cumulative five-year and 10-year returns are 63.45% and 303.73% respectively.
T.Rowe Price All-Cap Opportunities Fund (PRWAX)
T.Rowe Price All-Cap Opportunities Fund (NASDAQ:PRWAX) is a fund investing in growth companies to achieve capital appreciation.
It has a 5-star rating from Morningstar the overall risk could be above average. The net expense ratio is 0.76% and the investment style focuses on large-cap companies. The 20-year performance is 11.43% and the average annual total returns (calculated quarterly) for 5 -years and 10- years as of March 31, 2022, were 21.95% and 17.61% respectively.
As of May 31, 2022, the asset allocation was 90.02% in U.S. stocks, and 7.10% in global stocks, and the top 10 holdings included Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), and Visa (NYSE:V).
The largest sector was Information Technology with a weight of 27.60%, followed by Health Care with a weight of 19.89%.
On the date of publication, Stavros Georgiadis, CFA did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.