by Indah Nuryani

Created on: December 16, 2011   Last Updated: December 18, 2011

Best Mutual Funds for 2012

A mutual fund is a company which holds a number of stocks, bonds and securities and other investments. When you invest in a mutual fund, the company invests your money in these different sectors in return for a fee. In 2012, you can look for mutual funds which turn some of the focus on specialty areas. These include real estate, precious metals, the energy market and some basic metals. These commodities will probably perform well in the coming year and you should try to take advantage of that.

Every month The Street lists ratings of the top-rated mutual funds based upon risk and total-return characteristics. The Street's ratings offer a conservative, balanced approach for selecting a mutual fund. While there is no guarantee of future performance, these investment ratings provide a solid framework for making informed, timely investment decisions.  Below, we've put together a few lists of 10 Best Mutual Funds to invest in 2012

1. Permanent Portfolio Fund 

The best mutual fund today is the Permanent Portfolio Fund (PRPFX ) with an overall rating of "A+", or Excellent. The Permanent Portfolio seeks to preserve and increase there purchasing power value of its shares over the long term. The fund has maintained an A+ rating since December 2007. You can see the Overall Top Rated Mutual Funds at The Street's Mutual Fund Center. The fund may invest in shares of companies of any market capitalization including small or mid-capitalization companies. However, at least 60 percent of its investment in aggressive growth stocks will ordinarily be in securities listed on the New York Stock Exchange.

2. Bruce Fund (BRUFX) 

The second best overall rated fund is the Bruce Fund. The fund been ranked at "A+" in 10 of the last 11 months. The Bruce Fund has an investment objective of long term capital appreciation. The fund seeks to achieve the objective by investing primarily in domestic common stocks and bonds. The fund invests in stocks of any capitalization and also invests in foreign securities.

3. ING Value Choice A (PAVAX)

4. Nuveen Tradewinds Value Opp A (NVOAX)

5. Tilson Dividend (TILDX)

6. Schwab Tax-Free Bond Fund (SWNTX)

7. Appleseed Fund Investor (APPLX)

8. Vanguard Wellesley Income Inv (VWINX)

9. Matthews Asia Dividend Fund Inv (MAPIX)

10. ING Morgan Stanley Global Franch A (IGFAX)

A thorough knowledge of mutual funds to invest in 2012 will not be enough to make an informed decision. Before looking for the best mutual funds to invest in 2012, you have to know their performance in the recent past because it will give a rough idea about the level of their performance next year. You must remember not to blindly trust any advice while choosing the best mutual fund to invest in 2012. You can gather information about this from the various financial journals and websites as well as from the company prospectus. Research the company and make informed choices for your own peace of mind.

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