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Best Performing No-Load Mutual Funds of Q2 2015 - Mutual Fund Commentary

It's always good to keep profits in one's own pocket. No load funds assure that investors keep a higher percentage of their profits or helps lessen the loss of their investments. No load funds are funds that carry no one-time charges or commissions that investors need to pay either at the time of purchasing a fund or selling.

It's always important to get the maximum out of a fund, this was particularly evident in the tough second quarter that investors just experienced. Markets had a dismal run in the second quarter; wherein the S&P 500 and Dow declined 0.2% and 0.9%, however the Nasdaq did gain 1.8%.

The second quarter was also indicative of the flagging confidence of the mom-and-pop investors. In the first half of 2015, fund inflow slumped 36% year over year to $143 billion. This significant decline was largely due to the dismal trend in the second quarter; wherein inflows were down to $41 billion through Jun 17, comparing unfavorably with the $102 billion of inflows in the first quarter.

The top gainer in the second quarter was ProFunds UltraChina Inv (UGPIX), a no-load fund. UGPIX jumped 15.9% in the second quarter. However, toward the end of the second quarter the Chinese Stock market crashed and the continued fall has resulted in UGPIX falling close to 20% since July 1 st . While the 20% loss in less than one month is a cause for concern, it is worth noting that UGPIX was up 100% over the last three years before the 20% drop.

No load funds dominate the list of top performers. The average return from the top 100 no-load fund performers in the second quarter stood at 8.9%. Compared to the average return from the top 100 funds carrying a sales load which was 6.3%. The load-adjusted return for these funds would bring down the 6.3% average return even further. However, returns have come down from first quarter, and no-load funds are no exception. While the best gain of the second quarter was 15.9%, it was 24.6% for the first quarter which was achieved by Turner Medical Science Lng/Srt C (TMSCX).

Looking now at the fund families, while the list contains funds from Fidelity and Matthews International , none of the Vanguard funds could find a place in the top 15 list. Vanguard is otherwise popular for offering no load funds. In fact, Vanguard had a dismal second quarter and the best gain reached just 3.8%.

(Read: Best Performing Fidelity Mutual Funds of Q2 2015 )

Before looking at the top 15 no-load fund gainers, let's look at what the front and back end sales loads are.

Keep reading our Mutual Fund Commentary section, where we are reporting on performances and best picks from fund families and varied categories.

Top 15 No-Load Mutual Fund Performers of Q2 2015

Below we present the top 15 No-Load mutual funds with best returns of Q2 2015:

Note: The list excludes the same funds with different classes, and institutional funds have been excluded. Funds having minimum initial investment above $5000 have been excluded. Q2 % Rank vs Objective* equals the percentage the fund falls among its peers. Here, 1 being the best and 99 being the worst.

The list reveals a domination of funds from the Pacific category. Except for Hennessy Japan Small Cap Fund Inv (HJPSX), carrying a Zacks Mutual Fund Rank #2 (Buy) , all funds from the Pacific category belonged to the China region. The Japan mutual funds category was the overall top gainer in the first half of 2015, compared to China which ranked third.

As mentioned earlier, China had a strong performance in the second quarter, before the crash which began on June 12th. As China's Bull Run ended momentarily, the government actions were swift to prevent the market falling to catastrophic levels.

Even though the Shanghai Stock Exchange fell over 18% from June 12 th until the end of the second quarter, 5 China fund still occupy the top 5 positions on the list. These funds are Matthews China Dividend Fund (MCDFX), Matthews China Small Companies Inv (MCSMX), AllianzGI China Equity D (ALQDX), Invesco Greater China Y (AMCYX) and Fidelity China Region Fund (FHKCX). The other funds from China that made the list were Matthews China Fund (MCHFX) and RS Greater China Fund K (RCHKX). FHKCX and RCHKX carry a Zacks Mutual Fund Rank #1 (Strong Buy) , MCDFX and AMCYX hold a Buy rank, and MCSMX, ALQDX and MCHFX carry a Zacks Mutual Fund Rank #3 (Hold) .

The Healthcare sector was the second best gainer and Eventide Healthcare&Life Sciences N (ETNHX) and Fidelity Select Biotechnology (FBIOX) from the sector made the list. Both ETNHX and FBIOX carry a Zacks Mutual Fund Rank #1.

Also on the list are 3 funds from the Small Growth category. These funds are Turner Small Cap Growth Fund (TSCEX), Oberweis Emerging Growth Portfolio (OBEGX) and Oberweis Micro Cap Portfolio (OBMCX). Here, OBEGX and OBMCX carry a Strong Buy rank, while TSCEX holds a Zacks Mutual Fund Rank #4 (Sell) .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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