As 2022 drew to a close, many investors in 401(k) retirement plans celebrated impressive returns on their investments. This article explores the top-performing mutual funds within 401(k) accounts for 2022. These funds have delivered strong results, giving savers a compelling reason to stay invested.
- T. Rowe Price Equity Income Fund (PRFDX):
The T. Rowe Price Equity Income Fund, PRFDX, outperformed many of its peers in 2022. Its focus on dividend-paying stocks and undervalued companies contributed to its success. Investors looking for consistent income and growth were drawn to this fund.
- Vanguard Total Stock Market Index Fund (VTSAX):
Vanguard’s Total Stock Market Index Fund, VTSAX, mirrored the impressive performance of the overall stock market in 2022. As a low-cost index fund, it appeals to cost-conscious investors who want broad market exposure.
- Fidelity Contrafund (FCNTX):
Managed by star fund manager Will Danoff, the Fidelity Contrafund, FCNTX, stood out in 2022. Danoff’s strategy of seeking long-term capital appreciation led to a strong year for investors.
- American Funds Growth Fund of America (AGTHX):
The American Funds Growth Fund of America, AGTHX, had a banner year, reflecting the global growth trend. Its diversified portfolio and active management have made it a staple choice for 401(k) investors.
- T. Rowe Price Retirement 2030 Fund (TRRCX):
- Rowe Price’s target-date fund, TRRCX, designed for those planning to retire in or around 2030, delivered solid returns in 2022. Target-date funds are an excellent choice for hands-off investors looking for a diversified, age-appropriate strategy.
- Dodge & Cox Stock Fund (DODGX):
Value investing came back into focus in 2022, benefiting funds like the Dodge & Cox Stock Fund, DODGX. Investors gravitated toward undervalued stocks, propelling this fund to success.
- JPMorgan Government Bond Fund (OGBCX):
For investors seeking a more conservative approach, the JPMorgan Government Bond Fund, OGBCX, excelled in 2022. This fund predominantly invests in U.S. government securities, offering stability during market fluctuations.
- TIAA-CREF Social Choice Equity Fund (TICRX):
As ESG (Environmental, Social, and Governance) investing gained momentum, the TIAA-CREF Social Choice Equity Fund, TICRX, stood out. This fund focuses on socially responsible investments and aligns with the values of many 401(k) participants.
- Vanguard 500 Index Fund (VFIAX):
Vanguard’s 500 Index Fund, VFIAX, tracked the performance of the S&P 500 and attracted investors looking for broad market exposure and low expenses. It continued to be a top choice for many 401(k) savers.
- Fidelity Balanced Fund (FBALX):
Balanced funds, which combine stocks and bonds, attracted risk-averse investors. The Fidelity Balanced Fund, FBALX, offered a well-rounded approach for those seeking a blend of capital appreciation and income.
The top-performing mutual funds in 401(k) retirement plans for 2022 showcased a diverse range of strategies and asset classes. As investors evaluate their options for the year ahead, these funds provide insights into potential choices. Whether you’re seeking growth, income, or a balanced approach, 401(k) plans offer ample opportunities to grow your retirement savings. As you explore these options, remember to consider your financial goals, risk tolerance, and investment horizon to make informed decisions for a prosperous retirement.
