Best Mutual Funds to Invest in 2026

The Vanguard Wellington Fund Investor Shares (VWELX +0.00%) is one of the most resilient, time-tested mutual funds available. Launched in 1929, it has navigated almost a century of market cycles, delivering an 8.41% annualized total return since inception.

This fund has survived and thrived through major financial crises, including the Great Depression, Black Monday in 1987, the dot-com bubble, the Great Recession, and the COVID-19 market crash.

Unlike traditional index funds, this Vanguard fund is actively managed and does not track a benchmark. Instead, it holds a carefully selected portfolio: two-thirds are high-quality dividend-paying stocks screened for value and stability, and one-third are investment-grade bonds, providing a balance of growth and income.

This allocation helps the fund weather market downturns better than pure stock funds, making it a strong choice for investors seeking lower volatility without sacrificing returns.

That said, this mutual fund isn’t the most tax-efficient option due to its mix of stocks and bonds, which, along with a higher turnover rate from the active management, can generate taxable distributions. And although its 0.24% expense ratio is reasonable for an actively managed fund, it’s higher than that of low-cost index funds.