If you’re looking to invest in mutual funds, it can be hard to know where to start. But if you take the advice of famed investor Peter Lynch, and look for funds with the worst short-term performance, you could find yourself a serious bargain.
Mackenzie Bluewater Canadian Growth Fund (Fund code: MFC650 (FE))
Bargain bin mutual funds
It was a difficult year for most Canadian equity funds in 2022, so now is a great time to snap up some of the beaten-down conservative funds. We’ve rounded up two funds we consider top-notch, and particularly attractive right now.
Mackenzie Bluewater Canadian Growth Fund (MFC650(FE)) is one of our Conservative Canadian stock funds. The fund has positioned itself about 26 per cent in industrial stocks, with 18 per cent in tech, 14 per cent in financials, 12 per cent in health care, and seven per cent in consumer-discretionary stocks.
Even with its growth-oriented approach, the fund has relatively low volatility. It’s a great choice for the conservative portion of your portfolio.
Phillips, Hager & North Canadian Equity Fund (Fund code: RBF1130)
Phillips, Hager & North Canadian Equity Fund (RBF1130) also had a difficult year in 2022. Manager Scott Lysakowski takes a blended growth/value approach to investing in Canadian large-cap stocks.
The fund has 17 per cent in energy stocks, 14 per cent in industrials, 11 per cent in materials, and seven per cent in tech. It also has 12 per cent invested in the PH&N Small Float Fund, which invests in small-capitalization, less-liquid Canadian growth companies.
This fund offers a great balance of conservative, stable investments, with exposure to smaller companies.
It was a tough year for Canadian equity funds in 2022, but now is a great time to buy low on quality funds. Mackenzie Bluewater Canadian Growth Fund and Phillips, Hager & North Canadian Equity Fund are two great options for low-risk investors. Both funds offer the stability of conservative investments, with exposure to small-cap companies for growth.
This is an edited version of an article that was originally published for subscribers in the January 20, 2023 issue of Money Reporter. You can profit from the award-winning advice subscribers receive regularly in Money Reporter.
Money Reporter, MPL Communications Inc.
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Money Reporter •4/20/23 •