What are the oldest mutual funds?

Mutual funds, an important part of the retirement and investment strategy of many individuals and companies today, were first introduced in the United States in 1924 by MFS Investment Management. Although not publicly available until 1928, the first fund, the MFS Massachusetts Investors Fund, provided a way for select investors to pool their money and gain greater returns by taking advantage of the economies of scale and professional portfolio management. Met.

The idea behind creating this type of deposit investment is to allow a small group of investors access to a range of stocks and a group of fund managers.

Oldest Mutual Funds by Inception Date (Still Active)

Rank Name Date of Creation

  • MFS Massachusetts Investors Fund (MITTX) 1924
  • Putnam Investors Fund (PINVX) 1925
  • Pioneer Fund (PIODX) 1928
  • Vanguard Wellington Fund (VWELX) 1929
  • CGM Mutual Fund (LOMMX) 1929
  • Fidelity Fund (FFIDX) 1930
  • Dodge & Cox Balance Fund (DODBX) 1931

Why is the installation date important?

When you look at the performance of mutual funds, you have many options. You can see one year performance, three year performance, five year performance or 10 years performance. You will also get statistics showing the performance of the fund since its inception.

But performance statistics can be misleading from the start. You may think you have found a fund with great returns. However if you do not know how long this fund has been around, you may be looking at a fund that is one year or two years old. It is easier to achieve performance in the short term than in the long term. For the funds listed above, the start date has come back well enough that you have a good idea of ​​how well it has worked over the decades. That long-term strong performance level implies lead management and intelligent choices.

Should You Avoid New Mutual Funds?

The old funds on our list are impressive for their longevity, but that does not mean that the new funds are risky investments.

Searching for mutual funds by the start date is the only way to sort out the thousands of mutual funds available. Additional sorting options include risk, asset class or investment style. Good sources for mutual fund research are Morningstar, Jacks Investment Research and Yahoo! Finance. Look for screening tools in the Mutual Fund section and select the features you like. You may need a membership to gain access to more advanced screening tools.

The bottom line

The wise investor uses a number of criteria to select investments. A mutual fund with a long lifespan has clearly satisfied many investors. But even an old mutual fund can get in the way. Examine the fund’s current management and investment philosophy. As time goes on and a fund with a long track record will have to adapt to current conditions, new technology and the latest investment tools.

Remember your own investment horizons. You are unlikely to have a mutual fund for decades and long-term performance will outweigh some short-term risks. If you have a short-term outlook, do not expect the old fund to match its performance from the beginning. Short-term volatility in the stock market is a fact of life.

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