When I first looked beyond index funds, I was curious about actively managed mutual funds—the ones with portfolio managers making real-time decisions, selecting stocks and bonds to beat the market. Not all active funds succeed, but some have amassed enormous assets, reflecting investor trust and long-term track records.
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What Makes a Fund “Actively Managed”?
Unlike passive funds, which track an index, active funds have managers who buy and sell securities to try to outperform benchmarks. That requires research, judgment, and sometimes taking bigger risks.
Active funds tend to have higher expense ratios than passive funds. Their performance varies widely, and fees can eat into returns. However, the largest active funds often combine strong brand recognition, solid performance history, and institutional backing.
Quick Comparison Table of the 10 Largest Actively Managed Mutual Funds
| Fund Name | Ticker | AUM (Billion USD) | Expense Ratio | Minimum Investment | Focus |
|---|---|---|---|---|---|
| Fidelity Contrafund | FCNTX | $133 | 0.82% | $0 (via Fidelity) | Growth Equity |
| American Funds Growth Fund of America | AGTHX | $135 | 0.65% | $250 | Large-Cap Growth |
| Dodge & Cox Stock Fund | DODGX | $77 | 0.52% | $2,500 | Value Equity |
| American Funds Investment Company of America | AIVSX | $103 | 0.58% | $250 | Large-Cap Blend |
| PIMCO Total Return Fund | PTTRX | $70 | 0.82% | $1,000 | Fixed Income |
| T. Rowe Price Blue Chip Growth Fund | TRBCX | $50 | 0.70% | $2,500 | Growth Equity |
| Vanguard Wellington Fund | VWELX | $71 | 0.25% | $3,000 | Balanced (Stocks & Bonds) |
| American Funds EuroPacific Growth Fund | AEPGX | $50 | 0.84% | $250 | International Equity |
| Fidelity Puritan Fund | FPRCX | $45 | 0.54% | $0 (via Fidelity) | Balanced |
| Franklin Income Fund | FKINX | $40 | 0.85% | $2,500 | Income / Balanced |
1. Fidelity Contrafund (FCNTX)
The Contrafund is one of the most famous actively managed funds. I’ve seen it featured in countless retirement plans.
- AUM: $133 billion
- Expense Ratio: 0.82%
- Minimum: $0 (no minimum on Fidelity’s platform)
- Strategy: Growth stocks, mostly large-cap U.S. companies.
- Why I Watch It: It’s led by a long-time manager who’s built a reputation for picking quality growth companies. It holds giants like Amazon and Facebook.
2. American Funds Growth Fund of America (AGTHX)
One of the largest and oldest active growth funds.
- AUM: $135 billion
- Expense Ratio: 0.65%
- Minimum: $250
- Focus: U.S. large-cap growth and growth-oriented stocks.
- Why I Watch It: Managed by American Funds, known for steady performance and dividend reinvestment.
3. Dodge & Cox Stock Fund (DODGX)
This is a value-oriented fund with a contrarian investment style.
- AUM: $77 billion
- Expense Ratio: 0.52%
- Minimum: $2,500
- Focus: Large-cap value stocks.
- Why I Watch It: They emphasize buying undervalued companies with strong fundamentals. This fund has outperformed many peers over time.
4. American Funds Investment Company of America (AIVSX)
A large blend fund that invests in both growth and value.
- AUM: $103 billion
- Expense Ratio: 0.58%
- Minimum: $250
- Focus: Large-cap blend stocks.
- Why I Watch It: Steady, moderate growth. Popular in 401(k) plans.
5. PIMCO Total Return Fund (PTTRX)
One of the largest actively managed bond funds in the world.
- AUM: $70 billion
- Expense Ratio: 0.82%
- Minimum: $1,000
- Focus: Investment-grade bonds.
- Why I Watch It: Known for fixed income expertise, though its returns have been mixed post-2014.
6. T. Rowe Price Blue Chip Growth Fund (TRBCX)
Focused on large, well-established growth companies.
- AUM: $50 billion
- Expense Ratio: 0.70%
- Minimum: $2,500
- Focus: Large-cap growth.
- Why I Watch It: Has historically beaten the S&P 500 over long periods.
7. Vanguard Wellington Fund (VWELX)
One of the oldest balanced funds with a mix of stocks and bonds.
- AUM: $71 billion
- Expense Ratio: 0.25%
- Minimum: $3,000
- Focus: Balanced (approx. 60% stocks, 40% bonds).
- Why I Watch It: Great for investors seeking diversification and moderate risk.
8. American Funds EuroPacific Growth Fund (AEPGX)
A top international stock fund managed actively.
- AUM: $50 billion
- Expense Ratio: 0.84%
- Minimum: $250
- Focus: Non-U.S. growth stocks.
- Why I Watch It: Provides diversification outside U.S. markets.
9. Fidelity Puritan Fund (FPRCX)
Balanced fund with a mix of stocks and bonds.
- AUM: $45 billion
- Expense Ratio: 0.54%
- Minimum: $0 (via Fidelity)
- Focus: Balanced allocation for moderate growth.
- Why I Watch It: Flexible allocation and Fidelity’s strong management.
10. Franklin Income Fund (FKINX)
A balanced fund with an emphasis on income.
- AUM: $40 billion
- Expense Ratio: 0.85%
- Minimum: $2,500
- Focus: Dividend-paying stocks and bonds.
- Why I Watch It: Popular among income-seeking investors.
Expense Ratios and Impact on Returns
Expense ratios vary from 0.25% to 0.85%. Here’s how fees eat into returns:
Suppose a fund returns 8% gross annually and has an expense ratio e. Your net return is:
Net\ Return = 8% - eIf e = 0.80%, net return is 7.2%. Over time, small differences compound. For example:
Future\ Value = P \times (1 + r)^twhere
- P = initial principal,
- r = net annual return,
- t = years.
With $10,000 invested for 20 years:
- At 7.2% net:$10{,}000 \times (1.072)^{20} \approx 41{,}500
- At 7.7% net (if expense ratio were 0.3%): 10{,}000 \times (1.077)^{20} \approx 44{,}700
A 0.5% difference in fees costs you over $3,000 in this example.
Why I Track These Funds
I look at these funds because:
- They have the most assets, reflecting investor confidence.
- Their strategies vary: growth, value, bonds, balanced.
- They offer insights into active management’s potential and limits.
While I lean heavily on index funds, I keep a small portion of my portfolio in active funds for potential alpha and diversification.
