Devoted to understanding the basics and fundamentals of investing

I wanted to put together a little bit of a list for investors who are looking for top performing mutual funds who have the lowest expense ratios. All of the funds I will list below are rated 4 or 5 stars by morningstar and are stock mutual funds.

1. Columbia LifeGoal Growth Z (NGPAX)- Expense ratio 0.25%. This fund invests all its assets in underlying Columbia funds and has done well over the years. The fund has a very low annual holdings turnover of 8% which keeps this expense ratio very low.

2. Accessor Aggressive Growth Allocation (AAGRX)- Expense ratio 0.20%. This fund is an aggressive one that only turns over its portfolio at an 11% rate each year. It uses aggressive asset allocation to bring top returns over a 10 year or longer period.

3. American Funds Fundamental Investors (CFNFX)- Expense ratio 0.45%. This fund has consistently bested almost all of its peers as well as the S&P 500 while sporting this very low expense ratio. The fund seeks to buy stocks which offer growth at reasonable prices.

4. Fairholme Fund (FAIRX)- Expense ratio 1.00%. The expense here is a little higher than the rest, but the managers model themselves in a Warren Buffett mold and have done a tremendous job with the fund. The fund is a highly concentrated fund that holds no more than 25 equities at once.

5. Vanguard Small Cap Growth Index (VISGX)- Expense ratio 0.23%. This fund tracks the performance of the MSCI US Small Cap Growth Index. This fund has an expense ratio of 0.23%, while the average in this industry is 1.64%.

These funds offer the investors some solid choices with no loads, and very low expenses. Many investors do not understand how much their mutual fund is truly charging them, and how much it hurts their real return. Look for low expense funds when starting your search for the best mutual fund for you.

If you are interested in viewing either the top 5 large cap growth funds click here, or the top 5 value funds click here.