How Closely Do the 20 Best Mutual Funds Compare to Each Other?


Quick Answer

The top 20 best performing mutual funds as of 2015 show considerable variance in their year to date rate of return, from 40.02 percent to 17.57 percent, as reported by investing website Morningstar. Most of these funds return between 19 and 26 percent over the year.

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Full Answer

The top 20 best performing mutual funds have large variances in their historical rate of return, as compared to the year to date rate of return for themselves and for the other top 20 mutual funds. For example, while the Direxion Daily Russia Bull 3X fund has the highest current year to date rate of return, its rate of return over 2014 was -75.42 percent, and over two years was -56.69 percent; it is likely these loses were due to regional instability and international sanctions imposed on Russia during 2013 and 2014.

Conversely, the ProShares Ultra Nasdaq Biotechnology fund has returned 60.7 percent over the preceding year and 94.79 percent over two years, and continues to be in the top five funds for 2015 based on year to date returns. While historical trends are not necessarily indicative of future performance, examining both the current return and recent returns on a given fund helps give a better picture of the fund's likely growth as compared to year to date figures alone.

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