4 Best Roth IRA Funds

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Find best Roth IRA funds. These top Roth IRA mutual funds are great long term investment. Best funds are Doubleline Total Return Fund, Fidelity Contrafund, etc.

Roth IRA

Best Roth IRA Funds | Top Mutual FundsIf you are planning to retire in future, you should consider one of the individual retirement accounts. There are currently 2 individual retirement accounts: traditional IRA, and Roth IRA. There are pros and cons for each type. The other option is through company plan of 401k account.

A Roth IRA is an individual retirement account that provides a valuable future tax break: Tax-free income in retirement. Unlike traditional IRA, there is no up-front tax deduction for this Roth IRA. Roth distributions are tax-free when you follow the rules. Since you stash in a Roth IRA is your money, you can use your contributions (but not your earnings) any time tax-free and penalty-free.

To be eligible for Roth IRA, you need to find out about your current year income and your tax filing status. Most of the contribution limit is $5,500. The limit amount will drop depending upon your income.

Top Mutual Funds

Roth IRAKnowing the Roth IRA benefits, it is a great idea to invest in best mutual funds 2014. With low cost top funds, you can maximize your return through capital growth and/or income. You will find 4 best mutual funds below. There are from variety of classes such as balanced fund, core bond fund, stock fund, and international stock fund.

These best Roth IRA funds are selected based on its performance, management, rating, and costs. Also, all funds is open for new investors. You can buy with as little as $1,000 for these funds. You can find each fund review below.

The 4 best mutual funds for Roth IRA are:
  1. Doubleline Total Return Fund (DLTNX)
  2. Fidelity Contrafund (FCNTX)
  3. Dodge & Cox International Stock Fund (DODFX)
  4. Vanguard Wellesley Fund (VWINX)
Updated on 2/15/2014

Doubleline Total Return Fund - DLTNX Doubleline Total Return Fund (DLTNX)

There are only 2 bond gurus to follow: Bill Gross & Jeff Gundlach. You can invest in them through mutual funds: PIMCO Total Return (PTTAX) for Gross and Doubleline Total Return Fund for Gundlach.

Doubleline Total Return Fund utilizes its assets to purchase mortgage-backed securities. It may invest in junk bonds, bank loans and assignments and credit default swaps of companies in the high yield universe. The fund managers are Jeffrey E. Gundlach and Philip A. Barach. This best Roth IRA Fund is also popular among retail investors and institutional investors with $31.4 billion of assets.

With high yield of 4.82%, this no load fund has expense ratio fee of 0.73%. As 4 best mutual funds for Roth IRA, it has a 3 year average returns of 6.49%. in 2013, it managed to stay in top 16% among its peers.

Fidelity Contrafund (FCNTX)

Fidelity Contrafund - FCNTXAs one of the best mutual funds for Roth IRA, Fidelity Contrafund is ranked with 4 stars rating by Morningstar. William Danoff is the fund manager. This fund invests mainly in U.S. stocks. There is only a little yield, 0.13%, offered by this no load fund. The total assets are $108 billion. The portfolio turnover rate is 48%.

This equity mutual fund has returned 14.19% over the past 3 year, and 18.94% over the past 5 year. In 2013, it managed to get a total return of 34.15%. You can buy this best Roth IRA fund with $2,500 initial investment. For regular brokerage, you can invest as little as $2,500 as well.

The top 4 stocks in its holdings are Google Inc, Berkshire Hathaway Inc, Apple Inc, Wells Fargo & Co, and Amazon.com Inc. The top 3 sectors are technology, financial services, and consumer cyclical. you may also find this Fidelity Contrafund as one of your top 401k funds.

Dodge & Cox International Stock Fund (DODFX)

Dodge & Cox International Stock Fund is investing in a diversified portfolio of non-U.S. companies including emerging markets. This best mutual fund for Roth IRA has a dividend yield of 1.69%. Its expense ratio fee is only 0.64% per year. The total net assets are $52 billion.

Morningstar has ranked this foreign large blend fund with gold rating. You can start to buy this top mutual fund with $1,000 for your individual retirement account (IRA) through broker. This mutual fund has a 5 year average return of 17.72%.

As one of best Roth IRA funds, the top 3 stocks in its portfolio are Naspers Ltd, Roche Holding AG, and Sanofi. This top Roth IRA fund has top 2 assets allocation: Non U.S. stocks (93%), and U.S. stocks (5%).

Vanguard Wellesley Fund (VWINX)

Vanguard Wellesley Fund - VWINXVanguard Wellesley Fund is a great choice for your only fund. Managed by John C. Keogh and W. Michael Reckmeyer III, this balanced fund has managed to stay above competitors. It has a decent yield of 2.98%. This best mutual fund for Roth IRA is ranked with 5 stars & gold rating. It has low expense ratio fee of 0.25%.

This top moderate allocation mutual fund has a 5 year annualized return of 11.78%. As one of best Roth IRA Funds, its performance for the past 3 years is as follows:
  • Year 2013: 9.19%
  • Year 2012: 10.06%
  • Year 2011: 9.63%

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