| As our economic outlook continues to be poor | | | | or stocks. |
| and as the stock market is in turmoil, stock | | | | 2. The New Alternatives Fund (NALFX) |
| investing has become increasingly difficult. | | | | - this is the perfect mutual fund for times when |
| Maintaining a solid investment portfolio can be hard | | | | people and companies are looking for |
| work. One alternative to the difficult work of | | | | environmentally-friendly ways of doing things. This |
| stock selection is to invest in mutual funds. With | | | | mutual fund invests in companies that focus on |
| thousands of mutual funds to choose from, how | | | | renewable energy sources, as well as companies |
| can you tell which ones are the best? | | | | that are concerned with energy conservation and |
| That's why I have compiled a list of the 7 Best | | | | environmental protection. Over the next decade |
| Mutual Funds for 2009. After researching the | | | | green and alternative energy stocks will most |
| performance, stability, and income of hundreds of | | | | likely sky-rocket with gaining popularity and |
| top-rated funds, I found the best mutual funds to | | | | necessity. |
| invest in for 2009 and beyond. | | | | 3. Franklin Utilities Fund (FKUTX) |
| Income-Dividends | | | | - A utilities fund is also a great way to get a flow |
| One part of my selection process was to find | | | | of decent income during a time of poor stock |
| mutual funds with cash flow, either through | | | | performance. This mutual fund has a dividend yield |
| dividends or bond interest payments (in the form | | | | of 4% and a 10-year annualized return of 5.17%, |
| of dividends for mutual funds). This factor is | | | | which is very impressive. Utility companies are a |
| becoming ever more important during a time | | | | solid investment for having a stream of dividend |
| when stocks continue to decline. Through | | | | income. |
| dividends you can know that you will have an | | | | 4. ING Corporate Leaders Trust Fund (LEXCX) |
| income of the yield percentage. | | | | - Although its 10-year annualized return has been |
| Future Trends | | | | hurt by the recent stock market downturn |
| Another selection criteria was to find mutual funds | | | | putting it at 3.67% (which is better than all but |
| that are going to perform well for years to come. | | | | two main value strategy mutual funds), ING's fund |
| As you will see, I have included a mutual fund that | | | | has performed 10% better than the S&P |
| invests in stocks of alternative energy or "green" | | | | 500 over the past year. It also has a dividend |
| companies. The whole environmentally-friendly, | | | | yield of 2.46%. |
| green movement is just getting started and will | | | | 5. Franklin Gold and Precious Metals (FKRCX) |
| be a boon to the economy for the next 10-20 | | | | - This mutual fund has been a top performer |
| years. One aspect that is somewhat more of a | | | | over the past decade with a 10-year annualized |
| near-term strategy is the gold focused fund | | | | return of 14.42% and a current dividend yield of |
| because of the predicted rise in the price of gold | | | | 8.34%. This mutual fund has performed |
| over the next year or two. | | | | amazingly, and it will continue to perform with gold |
| Long-Term Performance | | | | becoming more of a flight-to-safety investment |
| The last and most important selection criteria was | | | | for investors. |
| the long-term performance of the mutual fund. | | | | 6. Vanguard Energy Fund (VGENX) |
| Any one stock or mutual fund can perform well | | | | - although the commodities boom of earlier this |
| over one or two years by luck, but it takes true | | | | year has faded, oil prices will come back. It is only |
| skill to manage a portfolio that has good returns | | | | a matter of time. Vanguard's Energy Fund has |
| over a ten year period. A major failure of many | | | | had a 10-year annualized return of 14.81%, which |
| investors that buy mutual funds is that they | | | | is better than most mutual funds of any kind. It is |
| chase the fund that is currently performing the | | | | positioned to perform well over the next few |
| best or just recently had its best year. If the | | | | years. |
| mutual fund is having an unbelievably great year, | | | | 7. Municipal Bond Fund (of your choice) |
| then either stay away from it because it's too | | | | - municipal bond rates have gone up in recent |
| late or sell it if you own it. | | | | months and continue to be a great source of |
| The 7 Best Mutual Funds for 2009: | | | | extra income. For example, some bonds in Florida |
| 1. American Century High-Yield Fund (AHYVX) | | | | are paying 6% a year in interest. Remember with |
| - With the current state of the economy, your | | | | municipal bonds that interest payments are |
| best bet for making money is finding an | | | | tax-exempt; just make sure you pick a bond that |
| investment with a stated income (i.e. dividends, | | | | is within your state (otherwise interest payments |
| bond interest payments). American Century's High | | | | become taxable). How does a tax-free income of |
| Yield Fund has a dividend yield of 9.38%, which is | | | | 5% or 6% on your investment sound for 2009- |
| much larger than most high yielding mutual funds | | | | with the U.S. still in recession? |