Selecting A Fund
There are times when people select a mutual fund because it has a superior track record, but later find out that the particular manager who was able to produce such returns no longer manages the fund.
It is worthy to note that mutual funds tend to change managers a lot of time, but they do not change the track record of the fund. Market analysts have discovered that 10 years is the ideal minimum duration to determine whether or not a manager has successfully exhibited investment skill. In essence, you need to choose a manager that has outperformed the benchmark category as well as the S&P 500. Morningstar has a database of more than 7,000 U.S mutual funds and only 23 passed this test.
A market analyst has heralded about 23 mutual funds as exceptional funds. These funds have reportedly been on an outperformance spree for quite a while. They have allegedly outperformed the 10.61% ten-year return of the S&P 500 as well as their respective category benchmarks by sufficient margin. Their excellent performances have made them very attractive to investors. However, while seventeen out of these funds are still open, five others are closed.
Open and Closed Mutual Funds
1. Berkshire Focus has a ten-year return of 17.66% and is managed by Malcolm R. Forbes
2. Firsthand Technology Opportun has a ten-year return of 17.59% and is managed by Kevin M. Landis
3. Jacob Internet Inv has a ten-year return of 14.45% and is managed by Francis J. Alexander
4. VALIC Company I Science & Tech gets a spot on this list with a ten-year return of 15.21% and is managed by Huachen Chen
5. T.Rowe Price Blue Chip Growth has a ten-year return of 13.61% and is managed by Larry J. Puglia
6. Red Oak Technology earns a spot on this list with a ten-year return of 16.53% and the fund is managed by Mark W. Oelschlager
7. PRIMECAP Odyssey Growth has a ten-year return of 13.66% and Joel P. Fried is the fund manager
8. Reynolds Blue Chip Growth has a ten-year return of 13.63% and the fund is managed by Frederick L. Reynolds
9. Delaware Healthcare I has an 18.69% ten-year return and is managed by Liu-Er Chen
10. Fidelity® Select Medical Tech. has a ten-year return of 14.78% and is managed by Edward L. Yoon
11. USAA Science & Technology has a ten-year return of 14.26% and is managed by John F. Averill
12. Monetta Young Investor has a ten-year return of 14.14% and is managed by Robert S. Bacarella
13. Buffalo Discovery has a ten-year return of 13.75% and is managed by Clay Brethour
14. Fidelity® Select Biotechnology has a ten-year return of 16.61 and the fund is managed by Rajiv Kaul
15. Matthew 25 has a ten-year return of 13.56 and the Fund manager is Mark Mulholland
16. Pin Oak Equity has a ten-year return of 14.35 and Mark W. Oelschlager is the Fund manager
17. Lastly, Oppenheimer Global Opportunity has a ten-year return of 13.86 and Frank V. Jennings is the Fund manager
The five closed funds include:
1. Brown Capital Management Small Co has a ten-year return of 15.45 and is managed by Robert Hall
2. PRIMECAP Odyssey Growth has a ten-year return of 13.66% and is managed by Joel P. Fried
3. Eaton Vance Atlanta Capital SMID-CAP Fund has a ten-year return of 13.81% and is managed by Charles B. Reed
4. PGIM Jennison Health Sciences has a ten-year return of 16.71% and is managed by David Chan
5. Fidelity Growth Company has a ten-year return of 14.23% and is managed by Steven S. Wymer
Generally, new investors cannot invest in a closed fund, but there is an exception. It is known as a fine print. Even though the five funds are currently closed to any new investor, an existing investor is still allowed to put in additional investments and allot the fund shares to family and friends. Such persons whom the fund shares are handed also acquire the status of an existing investor, and they can, in turn, put in additional investments as well as issue out some of their fund shares.
Thus, if you currently do not possess shares in any of these closed funds, all you need do is to find a person who already does. Also, if you have shares in any of the closed funds, it also means you have something which you can trade. For those who manage their own investments, it would be a good strategy to invest in all the funds that are still open. If these funds become closed later, the fact that you are an existing shareholder makes it possible for you to continue investing more. It also makes it possible for you to issue out some of your fund shares to others.