Editors note:

As of today 5/6/2013 large cap stocks have well outperformed small cap stocks. My personal opinion is the market is at all time highs and this is an excellent time to reduce your stock holdings.

The best large cap funds 2013

This could be the year for large caps funds

Depending on where you get you information the definition of a large cap stock varies. My definition is that the stock is part of the NASDAQ 100 or the Standard and Poors 500 index. Simply put large cap mutual funds invest in the stocks of United States companies that are of large size. A large cap mutual fund manager has only 500 stocks or so to choose from as opposed to a domestic small cap fund which has thousands or an international or global fund which has even more investment options.

Large cap mutual funds tend to follow a slightly different economic cycle than either a small or mid cap mutual fund. Owning many types of funds in a portfolio will result in a more diversified portfolio. Doomsayers may say what they want but the markets have more than doubled since March of 2009. That means the present market rally is over three years old. Large caps funds tend to do the best latter part in a rally.

Large cap funds are the one category where I recommend index funds or even exchange traded funds (ETF). I will first I will discuss specific recommendations for index and exchange traded funds. Later I will make recommendations for managed funds.

The reason I like index funds in the large cap area is that it is hard for a fund manager to outperform the market with a choice of only a few stocks. An index fund has low expenses and will outperform 80 percent of all funds according to statistics.

Many times in a 401K plan index funds are the investment vehicle of choice. I have reviewed plans which have zero expense ratios in some 401K plans.

A great choice is the Fidelity Spartan 500 Index. The fund symbol for this fund is FUSVX. The Fidelity Spartan 500 Index fund has an extremely low expense ratio of only 0.07 percent. That is 70 cents on per thousand dollars per year.

Another fine choice is the Vanguard 500 index fund symbol VFINX. This fund has a slightly higher expense ratio of 0.17 percent which is very small.

A important aspect of an index fund is that an investor does not have to worry about the size of the fund. A large cap index fund historically is going to beat over 80 percent of the managed funds. Many times in your 401K an index fund is your best choice. I have seen plans where the expense ratio in a 401K is zero.

Exchange traded funds are also a very good choice for investing in the large cap area. The fund symbol QQQ which is the proxy for the NASDAQ 100 and symbol SPY which is the proxy for the S&P500. I like these funds because they can be bought and sold anytime even after hours. An investor can use stop and limit orders to control their gains and losses. The down side of these funds is that a commission must be paid when buying or selling these funds in most cases. I also do not like the fact that many investors are tempted to become traders. Most amateur traders do not do well in the market.

What about managed funds?

There are some recommendations here too. Most of my picks in this area are concentrated portfolio funds. These funds are small and hold just a few different holdings. Many of these funds close to new investors from time to time to avoid the fund being too large. When a fund gets too large I recommend selling the fund.

My first recommendation is the Wells Fargo Advantage Growth symbol SGROX: This fund is up almost 8 percent per year over the last 10 years where the markets are down. Thomas Ognar has managed this fund for those years and piled up a great record.

Yacktman Fund symbol YAFFX: This fund is up 11.09 percent per year over the last decade. This is a focused fund with very limited holdings. I like this fund but I would not put over seven percent of my money here.

A fund that is classified as a large cap fund by Morningstar but has a lot of mid cap and international stocks in it as well as bonds is the Gabelli Asset Fund. The fund symbol for this fund is GABAX. This fund has been my largest fund holding for almost 15 years and it is one fund choice I have never regretted owning. Manger Mario Gabelli has run this fund since 1986. The fund has been up almost 12 percent per year over that time. To give you an idea of just what that means to you a $10,000 investment on March 3, 1986 is now worth $194,415.72! This fund is a well diversified fund and I have been saying for years if you own one mutual fund (which I do not recommend) own this one!

My last pick is a new fund run by a very experienced manger. The Akre Focus Fund symbol AKREX is up over 16 percent over the past year, when the market is only up 5 percent.

I preach a lot in my daily life about the importance of sound investing. Most people think that putting money in their 401K is good enough. It is not! If you wish to save why not put your hard earned money in the best investments?

As time passes investments change so should you and your investments.. My old article  The best large cap funds is still a great reference.

The best Mid cap Funds for 2013

A few years ago I wrote a hub about the best mid cap stock funds. While many of the funds I recommended I am still recommending others I am not. Managers have changed, funds have closed and in some cases the fund’s performance has been poor. Having the best mutual funds are key to having a winning portfolio. The funds listed in this hub are just my opinion and you can take that for what it’s worth.
Most of the funds I recommend are no load funds which the average investor can purchase with no transaction fee from Fidelity, Vanguard or other large brokerage house. They can be purchased with a smaller amount of money, and they are open to new investors. As illustrated below one of the funds takes 250 dollars to open! I have written some hubs where the funds have closed to new investors in a few weeks. I would really like to think that a lot of people reading my hubs poured too much money into these funds but I doubt that is the case. What really happened is that good investors also realize these funds were good funds and invested their money. A fund company acting responsibly will close there fund to new investors if inflow is larger than the manager can properly invest.

So what are the funds?

Wells Fargo Advantage Discovery symbol STDIX.

I like this fund because it has been run by the same manager Thomas Pence for over ten years. This fund is no load and has an IRA minimum initial investment of 1000 dollars. I like the performance numbers with this fund as well. This fund has produced a 10.85 percent return per year for the past 10 years. That is a 280% gain over that period. Morningstar rated this fund four stars.

Janus Enterprise Fund symbol JAENX

The fund manager has only been with this fund for five years but the results have been good. Like the Wells Fargo Advantage Discovery this fund is no load and has an IRA minimum initial investment of 1000 dollars. This fund has similar returns as well 10.86 percent. The rating on this fund is four stars as well from Morningstar.

Delafield Fund symbol DEFIX

This is a great fund. Dennis Delafield has run this fund since 1993. The results have been impressive. This fund is up 11.67 percent per year over the last 10 years. Better still the minimum initial IRA investment is 250 dollars. Morningstar and I part ways on this fund as they give this fund a three star rating.

FMI Common Stock symbol FMIMX

My last recommendation in this hub is this fund. Ted D. Kellner has run this fund since 1981. Morningstar gives this fund a five star rating. Up 10.64 percent per year over the last ten years the performance has been good. The minimum initial investment on this fund is 1000 dollars.

I think any of the funds listed in this hub would be good investments in your portfolio. Please develop an asset allocation that is right for you. If you invest wisely you money will grow faster. I will be writing other articles to cover other asset classes before the end of the year. I plan on developing a 2013 IRA portfolio which will be a hub with an aggressive asset allocation featuring the best of the best. 

Do you have any favorite Mid Cap funds? 

The best emerging market fund

The best emerging market fund
What are the best emerging market funds? Why I really don’t like these funds even if they are the best funds which have had outstanding returns? Read The Best Emerging Markets Funds to find out.

The M&I Trust 401K review

The M&I Trust 401K review
This is a 401K plan that i have reviewed that is pretty good. As a whole most 401K plans are ok at best.
Read about The M&I Trust 401K review

The Closed End Fund Portfolio

The Closed End Fund Portfolio
Closed end funds can be an excellent way to diversify your portfolio. Find out what I recommend in the closed end fund world. The Closed End Fund Portfolio may provide investment ideas to spark your returns.

The 2011 IRA portfolio

The 2011 IRA portfolio

I smoked the market in 2010 taking less risk. Can I do it again? Check out the 2011 portfolio for my picks in 2011.

The 2011 IRA portfolio

The low risk portfolio

The low risk portfolio
Today November 8, 2010 the low risk portfolio is up over 11% since May 4, 2010. The NASDAQ index is up 7.4 percent.You really do not have to take a lot of risk to get nice returns. If you do not like loses in your portfolio and still want to enjoy handsome gains the low risk portfolio may be for you!
The low risk portfolio

The best small cap funds!
Are you in the best small cap funds. In the early stages of an economic recovery small cap funds often out perform other sectors. The best small cap funds have been updated! If you want your portfolio to sing invest in the best small cap funds.

The low risk portfolio

The low risk portfolio
If you are a person who does not like to see your investments lose a lot of their value but still maintain a handsome return please consider the The low risk portfolio

The best taxable bond mutual funds

The best taxable bond mutual funds In your bond portion of your portfolio you will want to be in the best bond funds to make the most of your hard earned money. The best bond funds has recommendations for the several bond funds which put up nice numbers year in and year out without a lot of downside risk. Are you a CD investor who is not happy with the returns? For you the best taxable bond funds is a must read. The best taxable bond mutual funds

The best small cap funds

The best small cap funds
Recommendations for the best small cap funds have been updated. I am a big believer in having the best small cap funds in your portfolio. Small cap funds tend to do better in early stages of economic recovery. In the small cap arena the fund manager’s skills can really pay off for the investor.
The best small cap funds is a must read for the investor.

The best penny stock mutual funds

The best penny stock mutual funds You will not believe my top picks for penny stock mutual funds. Penny stock services brag of huge rewards. Just imagine how well the best penny stock mutual funds will do! The best penny stock mutual funds

The best large cap funds

The best large cap funds
Having the best large cap funds can boost your returns as well as diversify your portfolio. In this article there are some surprises if you have read my other fund recommendations. The best large cap funds is a read I recommend.

The best balanced funds

The best balanced funds
The best balanced funds are funds that have an asset allocation of their own. When you select a balanced fund the fund management is the key to your returns. Balanced funds can be just the ticket for the investor who wants to limit swings in his portfolio and at the same time enjoy generous returns. What are the best balanced funds? Read The best balanced funds to find out!

The American Opportunity Tax Credit

The American Opportunity Tax Credit

If you are the parent of a college student this is one tax break you defiantly want to take advantage of. $2500 tax credit is hard to pass up. Read more on The American Opportunity Tax Credit
on Hub pages.

Health Savings accounts fund your future

Health Savings accounts fund your future
Health savings accounts can be one of the best savings tools around. Money put in a Health savings account grows tax free and will never be subject to tax under present law as long as the money is spent on medical expenses. Read more about Health savings accounts. They are good for your wallet.

How much company stock should you keep in your 401K?

How much company stock should you keep in your 401K?
A number of people keep a lot of company stock in their 401K. Is this a good practice? You work for the company! Why not put your investment into the company that feeds you? How much company stock should you keep in your 401K? explains just how much company stock I think you should keep in your 401K!

The best mid cap funds

The best mid cap funds
The best mid cap funds will help your portfolio grow faster. In this article I recommend four mid cap funds. These funds have given the investor outstanding returns over the last ten or more years. The best mid cap funds is a must read for the serous investor.

How to invest and get better returns without getting into the stock market:

How to invest and get better returns without getting into the stock market:
Great returns are available without getting into the stock market. Specific fund recommendations include short term bond funds, high yield bond funds and arbitrage funds. If you want a little more return than a bank account and are willing to take a little mote risk read How to invest and get better returns without getting into the stock market: