There are many ways by which a mutual fund gains the thumbs-up sign among the investor community and the securities market. In general, the best mutual funds are selected based on a number of important criteria: actively managed funds, shareholder-centric investment decisions and predictive short-term and long-term returns of the investments made. Qualifications of the fund manager as well as viable mutual fund operation expenses which the investors pay for are also taken into consideration.
There are many organizations and private entities that rank the best mutual funds annually, including the media, non-profit organizations, consumer advocates and survey firms Their listings provide a guide to investors on what mutual fund to trust and invest in.
For 2007, the best mutual fund firms in the United States, based on the rankings made by Money Magazine are: For large-capital mutual funds: American Funds Amcap A, American Funds American Mutual and FMI Large Cap. For middle capital mutual funds: FAM Value Investments, FPA Perennial, and Fairholme. For small capital mutual fund: Bridgeway Small Cap Value N, Royce Pennsylvania Mutual Investment and Royce Value Plus Services. For multi-capital mutual funds: Bridgeway Aggressive Investors 2, Muhlenkamp and Weitz Hickory.
Selecting the best mutual fund ensures the investor of an assured earnings in the future for their hard-earned money. Through mutual funds, many people's dreams of a comfortable retirement, family business and a generally good future are realized.