It's never too early to think about saving for your retirement and investing in a fund can be one of the best ways to achieve financial growth over the next few years. Below are some of the most popular funds for your retirement savings, according to Kiplinger.com.
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American Funds American Balanced
American Balanced is a great choice for people who want to invest conservatively and generate income and growth.
One of the best traits of this fund is that it has the capability to move among stocks and bonds. This fund can invest up to 15 percent of assets outside of the United States and it is leading the pack by 92 percent in annual returns. However, you cannot invest more than 75 percent of your assets in common stocks. Additionally, per their website, "all of the fund's fixed-income investments must be investment-grade at the time of purchase."
How you can invest: You can begin your investment by filling out an application and investing a minimum of $250.
T. Rowe Price Blue Chip Growth
According to Kiplinger, Blue Chip Growth Fund is "one of the 25 best mutual funds for low fees". Overseen by T. Rowe Price's Executive Vice president Larry Puglia, this fund's main objective is to search for stocks for established companies that have high growth potential.
With more than $1 million invested by Puglia, the Blue Chip Growth Fund has delivered a 10.1 percent annual return, beating the S & P index by .9 percent per year. However, prepare for uncertainties as the health care sector tanked earlier this year. The fund had 10 percent of its assets in biotech, which led the sector.
How you can invest: You can begin investing by opening an account with T. Rowe Price and you will need a minimum of 2,500 dollars to establish the fund. However, there is an annual fee of 20 dollars if the fund balance is below 10,000 dollars.
Dodge & Cox Income
Kiplinger.com states that Dodge & Cox income fund contains investment-grade bonds, which include corporate and government debt in addition to asset-backed securities. Dodge & Cox's website boasts that the fund invests in high-quality bonds, debt securities and a "maximum of 20% of the fund's total assets may be invested in debt obligations rated below investment grade."
How you can invest: To start investing in a Dodge & Cox Income Fund, you must open a regular account or IRA first. Also, you must have a minimum of $2,500 for a regular account or $1,000 for an IRA to establish the fund.
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