Index mutual funds invest in many companies and track a specific market index, like the Nasdaq 100 (NDX) or the S&P 500 (SPX). These funds typically come with lower fees (expense ratios) when compared to actively managed funds. Today, we have focused on two mutual funds tracking the Nasdaq 100 index – NASDX and USNQX – with over 10% upside potential in the next twelve months, as projected by analysts.
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Let’s take a closer look at both funds.
Shelton Nasdaq-100 Index Fund (NASDX)
The NASDX fund tracks the Nasdaq-100 Index, which includes the top 100 non-financial firms listed on the Nasdaq stock exchange. This fund provides investors with a diversified portfolio of large-cap growth stocks, with a focus on technology and biotech companies. Interestingly, NASDX has generated a return of 15.3% over the past six months.
Overall, NASDX has a Moderate Buy consensus rating. This is based on the weighted average consensus rating of each stock held in the portfolio. Of the total stocks held, 85 have Buys, and 17 have a Hold rating. The analysts’ average price target on the NASDX fund of $43.77 implies a 10.5% upside potential from the current levels.
Victory NASDAQ-100 Index Fund (USNQX)
The USNQX fund enables investors to invest in a basket of leading technology, healthcare, and consumer sector companies. The USNQX fund has returned about 16.96% over the past six months.
On TipRanks, USNQX has a Moderate Buy consensus rating. This is based on 85 stocks with a Buy rating and 21 stocks with a Hold rating. The analysts’ average price target on the USNQX fund of $55.05 implies a 11.48% upside potential from the current levels.
Concluding Note
Mutual funds offer diversification and potentially lower risk compared to individual stocks. Further, they come with several benefits, such as higher liquidity and lower management fees. However, a prudent approach necessitates in-depth research before investing.
