The key to building wealth long-term is buying high-quality, no-load mutual funds run by seasoned stock pickers. Here are our favorites.
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In 2004, launched the Kiplinger 25 list of our favorite actively managed no-load funds. Over the years, the Kiplinger 25 has undergone several shifts. Most recently, we replaced the Heartland Mid-Cap Value Fund (HRMDX) with the Dean Mid Cap Value Fund (DALCX).
Earlier this year, we put Heartland Mid Cap Value on watch due to a disappointing turn in 2024, when it lagged 97% of its peers, which focus on midsize-company stocks trading at a discount. Its fortunes havent changed. Over the first eight months of 2025, Heartland lagged 95% of midsize-company value funds.
So we decided to replace it with Dean Mid Cap Value. Douglas Leach has been running the fund since the late 2000s. It had a large-company focus back then, but Leach and his cohorts were veterans of the small- and midsize-company value team at American Century, and in 2011, they retooled the funds strategy to focus on mid-cap stocks.
We summarize each of the Kiplinger 25 funds below, including Dean Mid Cap Value, and in most cases we try to provide some guidance for what role each fund can best play in your portfolio.
That said, we want to be clear: The Kip 25 itself is not meant to be a portfolio. Rather, pick and choose from among the funds to diversify and round out your portfolio where needed. And remember, the Kip 25 roster should be a starting point for your own research.
Are you scratching your head wondering which mutual fund deserves your hard-earned money this year? Trust me, I’ve been there too The investment landscape can be overwhelming with countless options screaming for attention But don’t worry – I’ve done the heavy lifting for you to identify the best mutual funds to invest in for 2020.
Why Mutual Funds Should Be On Your Radar in 2020
Before diving into specific recommendations, let’s quickly understand why mutual funds make sense for many investors. They offer professional management, diversification, and accessibility that individual stocks often can’t match. Plus, with the market volatility we’re seeing in 2020, having a professional manager at the helm can help navigate uncertain waters.
Top Mutual Fund Categories to Consider in 2020
Based on comprehensive analysis from trusted sources like U.S. News & World Report and Investor’s Business Daily here are the most promising fund categories for 2020
Technology Sector Funds
Technology continues to lead the market and specialized funds in this sector have delivered outstanding performance. The Red Oak Technology Select Fund (ROGSX) has earned recognition from Investor’s Business Daily as one of their “Best Sector Funds” for consistent performance across 1-year 3-year, 5-year, and 10-year periods.
Why tech funds? Simple – they capitalize on ongoing digital transformation trends that show no signs of slowing down.
Large Growth Funds
Large growth funds focus on established companies with above-average growth potential. These funds typically include tech giants and other innovative companies with strong market positions. They’ve shown impressive resilience even during market downturns.
Small Growth Funds
Don’t overlook smaller companies! Small growth funds often capture emerging opportunities before they hit the mainstream radar. While more volatile, they can deliver superior returns during economic recoveries.
High Yield Bond Funds
With interest rates at historic lows, high-yield bond funds offer attractive income potential compared to government bonds or CDs. They do carry higher risk than investment-grade bonds but can be a valuable addition to a diversified portfolio.
Standout Mutual Funds for 2020
Red Oak Technology Select Fund (ROGSX)
This fund deserves special mention since it was recognized in Investor’s Business Daily’s “Best Mutual Funds 2020” awards. It consistently beat the S&P 500 across multiple time periods (1, 3, 5, and 10 years). That’s impressive staying power!
The fund focuses on technology companies with strong growth potential and has demonstrated an ability to identify winners in this fast-moving sector. Its long-term performance places it among the elite tech-focused mutual funds.
Balanced Options
For investors seeking more balanced approaches, consider these categories:
- Moderate Allocation Funds: These maintain a mix of stocks and bonds (typically 60/40) for growth with reduced volatility
- Target-Date Funds: Perfect if you’re saving for retirement and want automatic rebalancing as you age
Investment Strategy Considerations for 2020
When selecting mutual funds this year, I recommend considering these factors:
- Your time horizon: Longer horizons can handle more aggressive growth-oriented funds
- Risk tolerance: Be honest about how much volatility you can stomach
- Expense ratios: Lower is generally better for long-term performance
- Fund manager experience: Look for funds with seasoned management teams
- Performance consistency: Prefer funds with steady performance over multiple periods
Tips for Mutual Fund Investors in 2020
- Don’t chase last year’s winners blindly – past performance isn’t guaranteed to continue
- Consider dollar-cost averaging instead of investing all at once
- Rebalance periodically to maintain your target asset allocation
- Watch for tax efficiency in taxable accounts (consider tax-managed funds)
- Look beyond star ratings to understand a fund’s strategy and risks
Common Mistakes to Avoid
I’ve seen too many investors make these errors:
- Paying excessive attention to short-term performance
- Ignoring expense ratios (they really do matter over time!)
- Over-diversifying with too many similar funds
- Panic selling during market corrections
- Focusing solely on yield without understanding risks
Best Practices for Fund Selection
When evaluating potential funds for your 2020 portfolio, consider this approach:
- Start with your asset allocation goals
- Identify fund categories that align with those goals
- Screen funds within those categories for:
- Consistent performance vs. benchmarks
- Reasonable expense ratios
- Experienced management team
- Investment philosophy that resonates with you
- Review the fund’s holdings to ensure they match what you expect
Mutual Funds vs. ETFs in 2020
Many investors wonder whether to choose mutual funds or ETFs. Here’s my quick take:
| Feature | Mutual Funds | ETFs |
|---|---|---|
| Trading | End of day pricing | Intraday trading |
| Minimum investment | Often has minimums | Buy as little as one share |
| Expense ratios | Generally higher | Usually lower |
| Tax efficiency | Varies | Typically more tax-efficient |
| Active management | More common | Less common (but growing) |
For many investors, a combination of both can make sense depending on your specific goals.
Sector-Specific Opportunities in 2020
Beyond broad categories, specific sectors show promise this year:
- Healthcare: The Live Oak Health Sciences fund exemplifies this opportunity area
- Technology: As mentioned, tech remains strong with funds like ROGSX leading the pack
- Financial Services: May benefit from evolving regulatory environment
- Consumer Defensive: Offers stability during uncertain economic conditions
The Role of Fixed Income in 2020
Don’t forget bonds! With market volatility, fixed-income funds can provide:
- Income generation
- Portfolio stabilization
- Diversification benefits
Consider these categories:
- Short-Term Bond funds
- Corporate Bond funds
- Intermediate Core Bond funds
My Final Thoughts
I’ve been investing in mutual funds for years, and if there’s one thing I’ve learned, it’s that no single “best” fund exists for everyone. Your best option depends on your unique situation, goals, and risk tolerance.
That said, technology-focused funds like the Red Oak Technology Select Fund have demonstrated impressive performance and could be worthy additions to your portfolio. Just remember to maintain proper diversification rather than going all-in on one fund type.
The best approach for 2020? Build a portfolio of complementary funds that align with your financial goals, then stick with your strategy through market ups and downs. Resist the temptation to chase performance or panic during volatility.
What’s worked best for me is focusing on funds with reasonable costs, strong management teams, and consistent long-term performance rather than chasing whatever’s hot at the moment.
So, whats the best mutual fund to invest in 2020? It’s the one that helps you sleep at night while moving you toward your financial goals!
Have you already invested in any of these fund categories? Which ones are you considering for your portfolio this year? I’d love to hear your thoughts!
DF Dent Midcap Growth
- Symbol: DFDMX
- 1-year return: 3.6%
- 5-year return: 5.3%
- 10-year return: 10.2%
- Yield: 0.0%
- Expense ratio: 0.89%
Portfolio: Midsize, growing companies make up 60% of the fund. The rest of the portfolio is evenly split between large and small companies.
Process: Companies that dominate their industries, have sustainable earnings growth and employ smart executives are prime candidates for this fund. But price matters, too.
Performance: “Mid cap has been a tough space, but we havent done great for the past couple of years,” says comanager Bruce Kennedy. A cautious view on AI-driven investment themes hurt. “Were believers in AI, but we cant justify the valuations.”
The fund doesnt own Palantir Technologies (PLTR) or AppLovin, the two biggest stocks in the Russell Midcap Growth index; both soared in 2024.
DF Dents 2.0% gain over the past 12 months lags the index.
Parting shot: We like that DF Dent Midcap Growth has a distinctly non-index-like portfolio. That said, were watching this fund closely.
T. Rowe Price Dividend Growth
- Symbol: PRDGX
- 1-year return: 11.9%
- 5-year return: 13.4%
- 10-year return: 12.4%
- Yield: 0.9%
- Expense ratio: 0.64%
Portfolio: More than 100 stocks of mostly large, dividend-paying companies that have a history of consistently raising payouts. The fund yields 0.9%.
Process: Dividend growth is more important to longtime manager Tom Huber than dividend yield.
Performance: When the stock market is in a go-go phase, as it has been for the past two years, dividend stocks tend to get short shrift. Ergo, although Dividend Growth earned a decent return of nearly 14% in 2023 and 2024, it fell short of the S&P 500, which delivered more than 25% in both years.
The recompense, however, is lower volatility. In 2022, when the S&P 500 sank 18%, Dividend Growth slipped just 10%.
Parting shot: Double-digit long-term returns and less volatility than the broad market? Yes, please.
- Symbol: VEIPX
- 1-year return: 12.9%
- 5-year return: 15.2%
- 10-year return: 11.1%
- Yield: 2.2%
- Expense ratio: 0.27%
Portfolio: U.S. dividend stocks. The fund yields 2.5%.
Process: Wellington Managements Matt Hand manages two-thirds of the assets, using fundamental research to find companies that pay above-average yield, boast high-quality traits and trade at reasonable prices.
Vanguards quantitative equity group runs the rest, using screens that focus on free cash flow (money left over after operating expenses and spending to maintain and expand the business) to pick stocks.
Performance: The fund lagged the FTSE High Dividend Yield Index and the S&P 500 but outpaced majority of its peers (funds that invest in value-priced large companies) over the past 12 months.
Stocks in the consumer staples sector – Archer-Daniels-Midland (ADM), for example – and materials, PPG Industries (PPG), weighed on performance.
The funds 10-year record beats three-quarters of its peers.
Parting shot: Dividend stocks hold up better in market sell-offs, which makes Equity Income a good portfolio diversifier.
In 2022, the fund was flat, with a 0.1% loss. By contrast, the S&P 500 slid 18.0%.
This Mutual Fund Is BEATING Flexi Cap & Index Funds In Long Term Performance | Best Mutual Fund
FAQ
Which mutual fund has the highest return in the last 5 years?
| ICICI Prudential Infrastructure Fund Direct – Growth | ₹ 216.04 Invest | 27.37% |
|---|---|---|
| ICICI Prudential Dividend Yield Equity Fund Direct – Growth | ₹ 60.58 Invest | 24.47% |
| Tata Small Cap Fund Direct – Growth | ₹ 43.56 Invest | 20.27% |
| HSBC Small Cap Fund Direct – Growth | ₹ 89.41 Invest | 19.91% |
What are the top 5 performing mutual funds?
- 149.93% ProFunds Precious Metals UltraSector Fd PMPIX.
- 116.18% Midas Discovery MIDSX.
- 111.32% Franklin Gold and Precious Metals Fund FKRCX.
- 105.25% Allspring Precious Metals Fund EKWAX.
- 102.59% VanEck International Investors Gold Fund INIVX.
Which mutual fund is best for the next 20 years?
| Name of the Fund | Fund Size (in Rs. Crores) | 1-Year Returns (%) |
|---|---|---|
| Canara Robeco Bluechip Equity Fund | 10,090 | 13.97 |
| ICICI Prudential Value Discovery Fund | 32,754 | 24.29 |
| Nippon India Large Cap Fund | 15,855 | 22.71 |
| HDFC Flexi Cap Fund | 38,668 | 22.04 |
Which mutual fund is giving the best return?
- Edelweiss US Technology Equity Fund of Fund Direct Growth. …
- Nippon India Silver ETF Fund of Fund (FOF) Direct Growth. …
- Aditya Birla Sun Life Silver ETF Fund of Fund Direct Growth. …
- Motilal Oswal BSE Enhanced Value Index Fund Direct Growth. …
- Axis Silver Fund of Funds Direct Growth.