Best Mutual Funds Now

This is the second article in a series of Vanguard mutual fund articles here on Best Mutual Funds Now.  This article provides a Vanguard Equity Income Fund review.  Vanguard has some of the best mutual funds so we thought that we would start our blog by reviewing the best vanguard mutual funds.

Overview of the Vanguard Equity Income Fund:

The Vanguard Equity Income fund is a value mutual fund.  It focuses on investing in large capitalization companies that are seen as value stocks as opposed to growth stocks.  This Vanguard fund invests mainly in common stocks of medium-size and large companies that tend to pay a high level of dividends.  However, this income mutual fund does not just focus on high paying dividend companies.  The Vanguard fund managers want a mix of healthy dividends and  capital appreciation. About 80% of the Vanguard Equity Income Fund assests are invested in equities.

Who should invest in the Vanguage Equity Income Mutual Fund?

This mutual fund is for two types of mutual fund investors.  It is for those looking for dividend income and those looking for long term stock value appreciation.  Since this Vanguard fund invests 80% of its assets in stocks, investors who don’t want a volatility in their investments should not buy this fund.  Additionally, if you are trying to avoid having to pay taxable dividend income, then this is not one the best Vanguard mutual funds for you.

What are the Vanguard mutual fund fees charged?

This Vanguard Equity Income Fund is a no-load mutual fund.  This means that you can buy this mutual fund straight from Vanguard saving you from having to pay a broker a commission on the sale.  This is a huge advantage of Vanguard mutual funds.  Most of the Vanguard funds are no-load and this saves you a lot of money.  Additionally, Vanguard does not charge you any fee to buy this fund or to sell it.

Vanguard does have an account service fee of $20 per year for non-retirement accounts.  However, you can avoid this $20 Vanguard account service fee by signing up for account access on Vanguard.com and choosing electronic delivery of statements, confirmations, fund reports, and prospectuses.  This is a great way to save money by not having to pay this Vanguard account service fee.

What invests are currently being held by this equity income fund?

The five largest holdings comprising this Vanguard Equity Income fund are as of May 31, 2008:

• General Electric Co.
• Chevron Corp.
• AT&T Inc.
• JP Morgan Chase & Co.
• Bank of America Corp.

If you are looking for a fund that can give you a good mix of dividend income and stock price appreciation this Vanguard Equity Income Fund could be one of the best Vanguard mutual funds for you.  We hope that you found this Vanguard Equity Income Fund review helpful.  If you have any questions, please do not hesitate to ask them in the comments below.

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