5 Mutual Funds to Buy in 2022

4. Vanguard Windsor II Fund Investor Share (NASDAQ:VWNFX)

Vanguard Windsor II Fund Investor Share (NASDAQ:VWNFX) is a Pennsylvania-based mutual fund that invests at least 80% of net assets in small cap and large cap firms whose stocks are considered undervalued by investment advisors. 

Vanguard Windsor II Fund Investor Share (NASDAQ:VWNFX) has more than $57 billion in net assets under management with a holdings turnover of 61%. The expense ratio for the fund is 0.34%.

A top holding of Vanguard Windsor II Fund Investor Share (NASDAQ:VWNFX) is Citigroup Inc. (NYSE:C), the New York-based banking firm. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in Citigroup Inc. (NYSE:C) with 28 million shares worth more than $1.9 billion. 

In its Q1 2021 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Citigroup Inc. (NYSE:C)  was one of them. Here is what the fund said:

“We fully exited position in Citigroup Inc. (NYSE:C). Global financial services company Citigroup Inc. (NYSE:C) made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”