AlphaProfit Provides New Recommendations on Best No Load, No Transaction Fee Mutual Funds for 2015.
Concerns of slowing global economic growth have risen as 2014 draws to a close.
Economic conditions have weakened in Europe. The unemployment rate in the euro zone is stuck in double-digits.
Japan’s gross domestic product contracted at a 1.6% annual rate during the third quarter.
China’s growth rate is expected to decline in 2014 to the slowest since 1990.
In contrast, the U. S. economy is faring well. The Commerce Department has reported GDP expanded at a 3.9% annual rate during the third quarter.
Coming on the heels of expansion at a 4.6% annual rate in the second quarter, this marks the largest back-to-back quarterly growth since late 2003.
The U. S. dollar is a key beneficiary of these dynamics. The greenback’s value as measured by the ICE U. S. dollar index is up over 10% since the end of June.
Commodity prices have come under pressure partly from the stronger dollar. Oil and gold are down 35% and 9%, respectively since the end of June.
As in years past, some mutual fund categories are faring better than others in 2014 … although the spread between the year’s best performing category and the worst performing category is a relatively narrow 13.7%.
Mutual Fund Category Average Return, %
Best performing category for year is highlighted
Foreign Large Blend
Foreign Small/Mid Blend
Diversified Emerging Mkts
U. S. stocks are leading most stock markets around the world in 2014.
The average domestic mutual fund is up single-digits.
Unlike 2013, large-cap mutual funds are outperforming mid-cap and small-cap mutual funds in 2014.
Overseas markets have not rewarded investors well.
Foreign mutual funds and emerging market mutual funds are lagging their U. S. counterparts for a second straight year.
Outlook for Best No Load Mutual Funds
Emerging market stocks are attractively valued compared to stocks in the U. S. as well as other developed markets.
According to gurufocus.com data, stocks in Brazil, China, India, Mexico, and Russia combined trade at 48% of GDP on average.
U. S. stocks trade at a 26% premium to GDP while stocks in other developed markets on average trade at par with GDP.
Meanwhile, monetary policy pursued by global central banks is starting to diverge.
Faltering growth is compelling the European Central Bank as well as central banks in Japan and China to pursue stimulus measures.
The Federal Reserve on the other hand is looking to rein stimulus. The central bank has completed its bond purchase program. It is pondering on raising interest rates in 2015.
With more compelling stock valuation abroad, foreign and emerging market mutual funds can outperform domestic mutual funds in 2015 if central banks abroad stimulate their economies and the Federal Reserve raises rates.
Index investors looking for the best no load mutual funds for 2015 can settle for Fidelity Spartan International Index Fund (FSIIX) and Fidelity Spartan Emerging Markets Index Fund (FPEMX).
Investors willing to ferret out opportunities by country stand to reap larger rewards from the best no load mutual funds in 2015.
One differentiating factor likely to impact stock prices in specific countries is the sensitivity of country’s economy to commodity prices. Commodity importers stand to benefit from a decline in prices while commodity exporter would be hurt.
Likewise, size of stimulus in relation to GDP is another differentiating factor.
AlphaProfit No-Load, No-Transaction-Fee Growth Fund Model Portfolio
AlphaProfit’s No-Load, No-Transaction-Fee (NL-NTF) Growth Model Portfolio consists of best-of-breed domestic, foreign, and specialty no-load mutual funds available without transaction fees in Fidelity FundsNetwork and Schwab OneSource network.
The NL-NTF growth model portfolio takes advantage of differentiating factors through timely investing style rotation. Learn more about AlphaProfit’s Fidelity fund recommendations, performance of Fidelity mutual fund model portfolios, and AlphaProfit Premium Service recommendations.
The table below shows examples of best no load mutual funds selected by AlphaProfit for inclusion in the NL-NTF growth model portfolio.
Best No Load Mutual Funds Selected by AlphaProfit from 2009 to 2014
ASTON/Fairpointe Mid Cap
Fidelity Small Cap Discovery
Foreign Large Blend
Westcore International Small Cap
Foreign Small/Mid Blend
Contributions from several best no load mutual funds included in the NL-NTF growth model portfolio drove its performance.
As of November 18, 2014, the NL-NTF growth model portfolio has gained at a 15.2% annual rate since 2009. The portfolio’s benchmark consisting of broad U. S. and foreign indexes has risen at a 12.3% annual rate during the same period.
Stated differently, the AlphaProfit NL-NTF Growth Model Portfolio has helped Premium Service subscribers earn 32% more money than index investors.
AlphaProfit recently reconstituted the NL-NTF growth model portfolio with best no load mutual funds for 2015.