6 Winning U.S. Mutual Funds To Buy On Trumpiversary

U.S. mutual funds have witnessed steady growth in assets under management during President Donald Trump’s first year in office. Despite persistent doubts over the President’s ability to pass key political reforms, U.S. equity funds have registered strong inflows.

Moreover, optimism over Trump’s infrastructure development and tax reform policies, indications from the Fed about an imminent rate hike and an encouraging earnings season are expected to attract investors toward U.S. stock funds for a considerable time. Following these recent gains, the addition of domestic equity mutual funds to one’s portfolio might prove one of the most suitable investment options at this point of time.

U.S. Stock Funds Rally Upward

On Trumpiversary, data showed that U.S. equity mutual funds witnessed strong growth during the first year of this presidency. According to Lipper data, total assets under management for domestic equity funds (including ETFs) jumped 16.1% to close at $21.1 trillion for the twelve-month period ending Sep 30.

Additionally, equity mutual funds, including both domestic and global funds, witnessed the highest percentage increase among the six major asset types. Equity mutual funds rose 21.6% to $11.4 trillion, with two key Lipper Macro-Groups, U.S. diversified equity funds and sector funds increasing 26.7% and 16.9%, respectively.

One-Year Performance Details Through Oct. 3 By Lipper Macro-Groups  

Emerging Markets Funds 27%
Developed International Markets Funds 25.4%
Mixed-Asset Funds 16.3%
World Taxable Fixed Income Funds 5%
Alternatives Funds 4.7%
Taxable Fixed Income Funds 3.4%
Commodities Funds 3.2%

Solid Inflows Contribute Most to Funds’ Asset Growth

Since Sep 30, 2016, U.S. mutual funds have attracted $691.2 billion of inflows, of which $686 billion have been invested in passively managed funds. Investors clearly favor U.S. equity funds, which got reflected after the asset types registered strong inflows.

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