6. Value stock funds
Overview: These funds invest in value stocks, those that are more bargain-priced than others in the market.
Who are they good for? When stocks run up in valuation as they do from time to time, many investors wonder where they can put their investment dollars. Value stock funds may be a good option. Value stock funds are good for investors who are comfortable with the volatility associated with investing in stocks. Investors in stock funds need to have a longer-term investing horizon, too, at least three to five years to ride out any bumps in the market.
Risks: Value stock funds will tend to be safer than other kinds of stock funds because of their bargain price, but they’re still composed of stocks, so they will fluctuate a lot more than safer investments such as short-term bonds.
Value stock funds are not insured by the government, either.
Rewards: Value stocks tend to do better as interest rates rise and growth stocks become less attractive on a relative basis.
Many value stock funds also pay a dividend, so that’s an additional attraction for many investors.
Where to get them: Value stock funds can come in two major types: ETFs or mutual funds. ETFs are usually available commission-free and without a minimum purchase requirement at most major online brokers.
However, mutual funds may require a minimum purchase and online brokers may charge a commission to trade them.
Below are the list of the 10 best investments in 2023: CLICK each link to read into details
1. High-yield savings accounts
2. Short-term certificates of deposit