3 Mutual Funds that Came Out on Top in 2012
It’s been a tough year for the mutual fund industry, to say the least. The political circumstances as well as unpleasant fiscal developments both at home and abroad have made investors uncertain. However, there are certain mutual funds that did really well in 2012. So here are three mutual funds that came out on top in 2012:
#1: Bond Funds
With more and more investors leaving the stock market, their money has been moved to invest in bond funds, and which totaled to an amount of $224 billion by the end of October, according to sources. It’s not surprising that well-trusted names such as the DoubleLine Total Return Fund have benefited the most from this change in investor trends.
#2: Index Funds
A large number of popular index fund providers cheapened their rates so as to gain an advantage over competitors’ prices.
One of the best examples of this is that Fidelity reduced the prices on 22 of their funds along with other companies like VanGuard, BlackRock and Charles Schwab also dropping their expense ratios. And even the merits of active vs passive investing continues to be a topic of debate, one thing is clear: investing in index funds was considerably cheaper in 2012.
#3: 401(k)
People who invest money in their 401(k) plans now have access to more information, thanks to new rules by the Labor Department. This change has been made so as to let investors know where their money is going. And even though these changes will be made gradually, their effect on investors can definitely be considered as a win.