47 0 0 0 13 6. Last year, investing was like being the proverbial duck best mutual funds to invest in 2017 the pond. On the surface, everything may have seemed calm, as a post-election rally on Wall Street pushed stock indexes to record highs.
But beneath it all was plenty of rough paddling. Markets like this are a great reminder that getting wrapped up in short-term twists and turns can be dangerous to your wealth. Sticking to a well-crafted strategy built to serve goals that are years and decades away remains a winning approach over the long run. Our recommended funds have proved their mettle over the long term. The tradeoff: In exchange for consistency and reliability, these funds rarely top the charts in any given year. To find our MONEY 50 stars, we focus on low-cost funds and long-term returns that match or beat their benchmarks.
Given these criteria, index funds and ETFs make up the core of our list—indexing is typically the cheapest way to invest, and data show that few actively managed funds consistently outpace the market. For those who prefer a human manager at the helm, and for less efficient markets, where smart investors may have an edge, we include actively managed funds. But we insist on veteran managers who look out for their shareholders and have a proven record of delivering strong long-term returns. Take Sudhir Nanda, lead manager of T.
As for how our list is actually organized, the funds are grouped into three sections. 14 low-cost index funds or ETFs designed to serve as the foundation for your portfolio. These funds give you exposure to the broad market and should make up the bulk, or possibly all, of your portfolio. This section is divided between actively managed funds and passively managed funds that offer you an investing tilt through a form of indexing. MONEY 50 to stay the same each year.
That’s again the case for 2017—we are making just three changes to the list. All three are actively managed portfolios run by solid teams of stock pickers and have performed decently over the long run, outpacing their peers over the past decade. But more recently, each has trailed more than half its peers over the past three years. Underperformance, though, isn’t the primary reason for removing these funds. All three portfolios charge management fees that run from 1. If you own them in a tax-sheltered account, you should consider switching.