Mutual funds are among the best investment options as they are less risky but represent attractive return potential. Such factors and more have led to phenomenal growth in the U.S. mutual fund industry, which is the biggest in the world. If you are planning to invest in mutual funds, then it is best that you start with the ones with a good track record. To help you choose, detailed below are the ten best performing mutual funds of 2020.
Best Performing Mutual Funds Of 2020
In our list of best performing mutual funds of 2020, we have only considered U.S. equity mutual funds. This list is based on the year-to-date returns data (as of Jan. 2021) from nerdwallet. Following are the best performing mutual funds of 2020:
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Alger Small Cap Growth I-2 (58.14%, AASOX)
With an inception date of Sept. 1988, this fund primarily invests in growth equity securities of U.S. small cap companies. It has an expense ratio of 0.98% and net assets of $332.29 million. AASOX has 89 holdings, while its top ten holdings are CareDx, Veeva Systems (Class A), Insulet, HubSpot, DexCom, Avalara, Neogen, Quidel, Bio-Techne and NanoString Technologies.
Lord Abbett Developing Growth R6 (58.76%, LADVX)
With an inception date of June 2015, this fund primarily invests in stocks of small U.S. companies. LADVX has an expense ratio of 0.59% and net assets of $4.4 billion. It has 102 holdings, while its top ten holdings are Appian, Inspire Medical Systems, Shift4 Payments, Cardlytics, Natera, TG Therapeutics, Five9, MKS Instruments, Redfin and Restoration Hardware Holdings. It has a 5-year return of 25.21%.
BNY Mellon Sm/Md Cp Gr Y (58.91%, DBMYX)
With an inception date of July 2013, this fund invests in “equity securities of small-cap and mid-cap U.S. companies." It has an expense ratio of 0.64% and net assets of $4.62 billion. DBMYX has 104 holdings (as of Dec. 2020), while its top ten holdings are Peloton Interactive, Twilio, Bandwidth, Square, Medallia, Twist Bioscience, HubSpot, Align Technology, Rapid7 and Proofpoint.
Columbia Small Cap Growth I Inst2 (59.30%, CSCRX)
With an inception date of Oct. 1996, this fund primarily invests in small companies that “appear built for long-term growth." It has an expense ratio of 0.94% and net assets of $2.42 billion. CSCRX has 95 holdings, while its top ten holdings are Planet Fitness, Bio-Techne, Caesars Entertainment, SiteOne Landscape Supply, Avalara, Chemed, Bill.com Holdings, Natera, Heska and 10x Genomics Income-Class A.
PGIM Jennison Focused Growth R6 (61.09%, PSGQX)
With an inception date of May 2012, this fund primarily focuses on larger-cap stocks that it believes have sustainable above-market growth in revenues, earnings and cash flow. It has an expense ratio of 0.67% and net assets of $1.25 billion. PSGQX has 29 holdings, while its top ten holdings are Apple, Amazon.com, Tesla, LVMH Moet Hennessy Louis Vuitton, Match Group, Facebook, Shopify, Netflix, MercadoLibre and Mastercard.
Alger Large Cap Growth I-2 (61.56%, AAGOX)
With an inception date of Jan. 1989, this fund primarily invests in U.S. large cap stocks, which it selects by using its fundamental research. AAGOX has an expense ratio of 0.89% and total net assets of $427.97 million. It has 49 equity holdings, while its top ten holdings are Apple, Amazon, Tesla, Shopify, Facebook, MercadoLibre, Alger 25 Fund Class P, Microsoft, Intuitive Surgical and Crown Castle International.
Fidelity Advisor Growth Opps Z (62.66%, FZAHX)
With an inception date of Nov. 1987, this fund invests in stocks that it believes have above-average growth potential. It has an expense ratio of 0.72% and total net assets of $19.89 billion. FZAHX has 281 holdings, while its top ten holdings are Microsoft, Amazon, Apple, Alphabet, Tesla, Facebook, Pinduoduo, Roku, NVIDIA and Carvana. The top ten holdings represent 34.36% of fund’s total portfolio.
American Century Focused Dynamic Growth Investor Class (67.95%, ACFOX)
With an inception date of May 2006, this fund aims to invest “in a focused number of large U.S. growth stocks." It has an expense ratio of 0.85% and net assets of $2.04 billion. Top ten holdings of ACFOX are Tesla, Amazon.com, Slack Technologies, Alphabet, Okta, DocuSign, Square, Chegg, Boston Beer and Visa. These ten holdings represent 51% of ACFOX’s total portfolio.
Lord Abbett Growth Leaders F (69.37%, LGLFX)
With an inception date of June 2011, this fund seeks to offer long-term growth in capital by primarily investing in U.S. equities. It has an expense ratio of 0.68% and net assets of $8.54 billion. LGLFX has 79 holdings, and its top ten holdings are Apple, Amazon.com, Microsoft, Tesla Motors, Alphabet, Roku, NVIDIA, Uber Technologies, Facebook, and QUALCOMM. LGLFX has a 5-year return of 25.82%.
Delaware Smid Cap Growth Institutional (81.83%, DFDIX)
With an inception date of Nov. 1992, this fund focuses on “competitively advantaged companies well positioned to participate in major demand trends." The expense ratio of DFDIX is 0.85%, while its net assets are $4.9 billion. The fund had 44 holdings as of Dec. 31, 2020. Top ten holdings of the fund are YETI Holdings, The Trade Desk, Progyny, Planet Fitness, Exact Sciences, iRhythm Technologies, RingCentral, NovoCure, Performance Food Group and Match Group.