In this article we discuss the 10 mutual funds to buy in 2022. If you want to skip our detailed analysis of these funds, go directly to the 5 Mutual Funds to Buy in 2022.
Many investors have been dismayed by the volatility associated with owning individual stocks in the present macroeconomic environment. For these investors, mutual funds are a great way of spreading overall risk while maximizing gains. The inflows into mutual funds in 2021, one of the most volatile years in stock market history, outlines this better. According to a report by financial services firm Morningstar, flows into long-term mutual funds and exchange-traded funds reached a high of $1.2 trillion last year, breaking a record stretching back to 1993.
Overall, passively managed funds — where investment securities are not chosen by a manager but automatically selected to match an index — registered inflows of $958 billion in 2021, around $700 billion more than active funds. Passive equity funds based in the United States had intakes of almost $356 billion last year, compared to active funds that registered outflows of $195 billion during the period. 2021 was also a good year for ESG (environmental, social, and governance) funds which had an annual intake of $71 billion, up from $51 billion in 2020.
As inflation rises and the markets become more volatile in 2022, investors are looking towards some top mutual funds to diversify their portfolios. The popularity of individual stocks among top funds gives a general indication of where things are headed. Some of the top stocks among mutual funds for 2022 include JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), and Exxon Mobil Corporation (NYSE:XOM), among others discussed in detail below.
Our Methodology
The mutual funds that are expected to perform well in 2022 considering the macroeconomic environment were preferred for the list. The top holdings of each fund are mentioned alongside other details for further clarity.
Data from around 900 elite hedge funds tracked by Insider Monkey was used to quantify the hedge fund sentiment around each top holding.
Source:Pixabay
Mutual Funds to Buy in 2022
10. Voya Russell Large Cap Index Portfolio Class I (NASDAQ:IIRLX)
Voya Russell Large Cap Index Portfolio Class I (NASDAQ:IIRLX) is an Arizona-based mutual fund that invests at least 80% of net assets in stocks present on the Russell Top 200 Index. The fund primarily focuses on investments related to equities, convertible securities, and other derivatives tied to the index.
Voya Russell Large Cap Index Portfolio Class I (NASDAQ:IIRLX) has more than $1.27 billion in net assets under management with a holdings turnover of 6%. The expense ratio for the fund is 0.36%.
One of the premier holdings of Voya Russell Large Cap Index Portfolio Class I (NASDAQ:IIRLX) is Microsoft Corporation (NASDAQ:MSFT), the Washington-based tech giant. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 25 million shares worth more than $7 billion.
Just like JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), and Exxon Mobil Corporation (NYSE:XOM), Microsoft Corporation (NASDAQ:MSFT) is one of the stocks on the radar of elite investors.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft Corporation (NASDAQ:MSFT) in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. Microsoft Corporation (NASDAQ:MSFT) continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives Microsoft Corporation (NASDAQ:MSFT) the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
9. Hartford Core Equity Fund Class R5 (NASDAQ:HGITX)
Hartford Core Equity Fund Class R5 (NASDAQ:HGITX) is a Connecticut-based mutual fund that invests at least 80% of net assets in common stocks present on the S&P 500 Index. The fund also has a provision of investing in a broad range of market capitalizations.
Hartford Core Equity Fund Class R5 (NASDAQ:HGITX) has more than $11.8 billion in net assets under management with a holdings turnover of 22%. The expense ratio for the fund is 0.48%.
One of the top holdings of Hartford Core Equity Fund Class R5 (NASDAQ:HGITX) is Apple Inc. (NASDAQ:AAPL), the California-based technology company. At the end of the third quarter of 2021, 120 hedge funds in the database of Insider Monkey held stakes worth $146 billion in Apple Inc. (NASDAQ:AAPL).
In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“Apple Inc. (NASDAQ:AAPL) is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple Inc. (NASDAQ:AAPL) was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
8. Voya Russell Large Cap Growth Index Portfolio Class I (NASDAQ:IRLNX)
Voya Russell Large Cap Growth Index Portfolio Class I (NASDAQ:IRLNX) is an Arizona-based mutual fund that invests at least 80% of net assets in firms on the Russell Top 200 Growth Index.
Voya Russell Large Cap Growth Index Portfolio Class I (NASDAQ:IRLNX) has more than $1.54 billion in net assets under management with a holdings turnover of 13%. The expense ratio for the fund is 0.43%.
A flagship holding of Voya Russell Large Cap Growth Index Portfolio Class I (NASDAQ:IRLNX) is Visa Inc. (NYSE:V), a California-based payments firm. At the end of the third quarter of 2021, 143 hedge funds in the database of Insider Monkey held stakes worth $26 billion in Visa Inc. (NYSE:V).
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa Inc. (NYSE:V).”
7. Fidelity NASDAQ Composite Index Fund (NASDAQ:FNCMX)
Fidelity NASDAQ Composite Index Fund (NASDAQ:FNCMX) is a Boston-based mutual fund that invests at least 80% of net assets in companies that trade on the NASDAQ exchange. The fund also lends securities to earn income.
Fidelity NASDAQ Composite Index Fund (NASDAQ:FNCMX) has more than $14.2 billion in net assets under management with a holdings turnover of 17%. The expense ratio for the fund is 0.29%.
One of the top holdings of Fidelity NASDAQ Composite Index Fund (NASDAQ:FNCMX) is Comcast Corporation (NASDAQ:CMCSA), a media and technology firm. Among the hedge funds being tracked by Insider Monkey, New York-based firm Eagle Capital Management is a leading shareholder in Comcast Corporation (NASDAQ:CMCSA) with 29 million shares worth more than $1.6 billion.
In its Q1 2021 investor letter, Nelson Capital Management, an asset management firm, highlighted a few stocks and Comcast Corporation (NASDAQ:CMCSA) was one of them. Here is what the fund said:
“Comcast Corporation (NASDAQ:CMCSA) is the Largest cable provider in the U.S. and is the dominant internet access provider in the markets it serves. Though Comcast Corporation (NASDAQ:CMCSA) will likely see further declines in cable subscriptions due to ongoing cord-cutting, it should be able to off set that lost revenue by growing internet access customers and instituting higher pricing. The pandemic has increased the importance of a fast internet connection, with more content streaming to homes at increasingly higher quality. Comcast Corporation (NASDAQ:CMCSA) made significant upgrades early on, allowing it to quickly deploy new technology and increase speeds to meet the evolving needs of its customers.”
6. Shelton Capital Management Nasdaq-100 Index Fund Direct Shares (NASDAQ:NASDX)
Shelton Capital Management Nasdaq-100 Index Fund Direct Shares (NASDAQ:NASDX) is a California-based mutual fund that invests at least 80% of net assets in stocks on the NASDAQ-100 Index. The index includes 100 non-financial companies listed on the NASDAQ market according to their market capitalization.
Shelton Capital Management Nasdaq-100 Index Fund Direct Shares (NASDAQ:NASDX) has more than $1.31 billion in net assets under management with a holdings turnover of 12%. The expense ratio for the fund is 0.50%.
One of the top holdings of Shelton Capital Management Nasdaq-100 Index Fund Direct Shares (NASDAQ:NASDX) is Meta Platforms, Inc. (NASDAQ:FB), the California-based technology company. At the end of September, 248 funds in the Insider Monkey database were long Meta Platforms, Inc. (NASDAQ:FB) with stakes worth $38 billion.
Alongside JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), and Exxon Mobil Corporation (NYSE:XOM), Meta Platforms, Inc. (NASDAQ:FB) is one of the stocks attracting the attention of smart investors.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:
“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
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Disclosure. None. 10 Mutual Funds to Buy in 2022 is originally published on Insider Monkey.