4 Best No Load Mutual Funds To Buy In 2019

U.S. equities may have fared well in the past four trading sessions but the broader economic headwinds that induced stock market volatility over the past few months haven’t disappeared completely.

Fears of macroeconomic uncertainties and an impending economic slowdown worldwide have not subsided. Therefore, it would be ideal to invest in no load mutual funds that could offer similar returns to that of a load fund without extra charges.

Global Economic Slowdown Likely in 2019

The International Monetary Fund (IMF) expects 3.7% global growth in 2019, same as its predictions for the last two years. However, this is lower than the fund’s projected global growth eight months ago, which was 3.9%. The International Monetary Fund also expects U.S. growth to slow down from 2.9% in 2018 to 2.5% in 2019.

Reports by the Federal Reserve and UBS echoed IMF’s projections. The Fed expects U.S. economic growth to slow down to 2.3% this year against last year’s second and third-quarter U.S. economic expansion of 4.2% and 3.4%, respectively. UBS noted that stricter monetary policy, alterations in the political scenarios of major economies and weaker projected earnings growth might be the reasons of a global economic slowdown in 2019. 

Deteriorating U.S.-China relationships on the trade front had a role to play in the economic slowdown projections as well. Trade war effects were evident in Apple and Samsung’s declining product sales in China in the last quarter of 2018. Both companies blamed China’s economic slowdown for weakening demand for their products.

According to a Bloomberg report, this is what Song Myung-sup, a Hi Investment & Securities Co. analyst, said about the South Korean company’s first drop in quarterly operating profit in two years, “It’s not just Apple, but also smartphone, server and PC manufacturers that are not buying. While the U.S.-China trade war hangs over them, these customers just won’t accept current prices, and Samsung faces pressure to cut chip prices.”

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