In this article we discuss the 5 mutual funds to buy in 2022. If you want to read our detailed analysis of these funds, go directly to the 10 Mutual Funds to Buy in 2022.
5. Fidelity 500 Index Fund (NASDAQ:FXAIX)
Fidelity 500 Index Fund (NASDAQ:FXAIX) is a Boston-based mutual fund that invests at least 80% of net assets in firms listed on the S&P 500 Index. The fund also lends securities to earn income.
Fidelity 500 Index Fund (NASDAQ:FXAIX) has more than $399 billion in net assets under management with a holdings turnover of 7%. The expense ratio for the fund is 0.01%.
A top holding of Fidelity 500 Index Fund (NASDAQ:FXAIX) is JPMorgan Chase & Co. (NYSE:JPM), the New York-based finance firm. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in JPMorgan Chase & Co. (NYSE:JPM) with 7 million shares worth more than $1.1 billion.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and JPMorgan Chase & Co. (NYSE:JPM) was one of them. Here is what the fund said:
“After a strong performance in 2019, we wrote this about our bank stocks in last year’s report: “There will be another recession sooner than later, and our banks will see larger loans losses, but we think this is more than priced into the stock, and our banks are well reserved for that eventuality.” Little did we know “sooner” really meant “a few weeks from now.” Despite the economic shock, the banks still have huge capital cushions that can absorb large loan losses. Our remaining bank investments, JPMorgan Chase & Co. (NYSE:JPM) and Bank of America, increased their reserves significantly at the beginning of the Covid-19 crisis in anticipation of imminent loan defaults, but with the government stimulus and perhaps a more resilient economy than many would have guessed, actual loan losses are up only slightly. They might happen later in 2021, but with an additional stimulus package and the vaccine rolling out, the large-scale losses may not be as bad as most people predicted. The bigger drag on the banks’ earnings power is lower rates, which in our opinion will persist for a long time. Despite this drag, we estimate both JPMorgan Chase & Co. (NYSE:JPM) and Bank of America will continue to grow revenue and earnings over the next few years, while we believe their stocks remain bargains in a somewhat expensive market. JPMorgan’s earnings per share declined 17% last year, and its stock returned -5.5%. Bank of America’s earnings, which are more sensitive to interest rates, were down 32%, and its stock returned -11.6%.”
