Top 12 Vanguard Investment Funds for Long-Term Growth

Vanguard offers a range of funds ideal for beginner investors thanks to their affordability and broad diversification across multiple asset classes and regions. With so many options, choosing the right fund can be challenging. Investors should begin by reviewing Vanguard’s top performers, considering their own risk tolerance, and assessing fund safety. Whether seeking stability or growth, there's a Vanguard fund suited for every investor.

Vanguard Wellesley Income Fund

This fund balances approximately 66% bonds with 34% stocks, making it a low-risk choice for newcomers. However, keep in mind that lower risk typically results in modest returns compared to stock-heavy funds.

Another excellent option is the Vanguard Star Fund, which features a two-thirds stock and one-third bond mix. Suitable for medium-risk investors aiming for long-term growth, this fund requires an initial investment of $1,000.

Vanguard Target Retirement 2050 Fund

This fund is designed for those planning to retire around 2050. It gradually shifts from stocks to bonds as the retirement date approaches, making it suitable for long-term investors with an initial minimum of $1,000.

Range of Index Options

Beginners can also opt for index-based funds considered among Vanguard’s best options.

Vanguard Balanced Index Fund

This fund offers a moderate mix of two-thirds stocks and one-third bonds, ideal for investors seeking balanced growth with moderate risk. It combines stock and bond indexes, functioning like two funds in one, with a minimum investment of $3,000.

Vanguard 500 Index Fund

Cost-effective and providing exposure to the broad U.S. stock market, this fund invests solely in stocks. It has higher risk and requires a minimum investment of $3,000.

Vanguard Total Stock Market Index

This fund offers comprehensive exposure to over 3,000 U.S. stocks, including small and mid-cap companies, at a low cost. The initial investment is $3,000.

Vanguard Total Bond Market Index

Similar to the total stock market fund but focusing on the U.S. bond market, it’s ideal for diversifying and adding low-cost, risk-managed assets. Minimum investment is $3,000.

Vanguard Total International Stock Market Index

This fund covers global stocks outside the U.S., suited for investors seeking international diversification. The starting amount is $3,000.

Small-Cap Stock & Sector Funds

After establishing a portfolio with large-cap stocks, investors can consider aggressive small-cap and sector-specific funds.

Vanguard Explorer Fund

Investing in around 600 small-cap stocks, this fund offers higher growth potential with increased risk. The initial investment requirement is $3,000.

Vanguard Healthcare Fund

For exposure to the healthcare sector, this fund is an option, but allocation should not exceed 5% of the portfolio to maintain diversification.

Choose any of these funds for a meaningful, long-term investment.