Published on 25 Jan 2022 on Insider Monkey via Yahoo Finance
In this article we discuss the 10 mutual funds to buy in 2022. If you want to skip our detailed analysis of these funds, go directly to the 5 Mutual Funds to Buy in 2022.
Many investors have been dismayed by the volatility associated with owning individual stocks in the present macroeconomic environment. For these investors, mutual funds are a great way of spreading overall risk while maximizing gains. The inflows into mutual funds in 2021, one of the most volatile years in stock market history, outlines this better. According to a report by financial services firm Morningstar, flows into long-term mutual funds and exchange-traded funds reached a high of $1.2 trillion last year, breaking a record stretching back to 1993.
Overall, passively managed funds — where investment securities are not chosen by a manager but automatically selected to match an index — registered inflows of $958 billion in 2021, around $700 billion more than active funds. Passive equity funds based in the United States had intakes of almost $356 billion last year, compared to active funds that registered outflows of $195 billion during the period. 2021 was also a good year for ESG (environmental, social, and governance) funds which had an annual intake of $71 billion, up from $51 billion in 2020.