Vanguard has earned its stellar reputation by providing investors with low-cost mutual funds optimized for long-term success. Due to their unwavering commitment to low fees and high quality, Vanguard now administers more than two-thirds of all defined contribution plans in the United States. With roughly 380 mutual funds, investors can pick from a dizzying array of passive index and active fund alternatives the firm provides. Most 401(k) plans offer a curated selection of investment options, but that list almost always includes several Vanguard funds. Forbes Advisor has compiled a list of top Vanguard mutual funds to aid those who participate in defined contribution plans. Those Vanguard funds that require a minimum investment of $3,000 or more are the only ones mentioned (this minimum is often waived in D.C. plans). We've also zeroed in on the best investments for retirees.

Here Are 7 Vanguard Funds For Long-Term Investment

Index Of All Stocks Tracked By Vanguard (VTSAX)

The VTSAX mutual fund from Vanguard is the biggest in the world. It is an index fund that invests in a wide variety of stocks. It has relatively modest operating costs. The portfolio includes small-, mid-, and large-cap equities, giving investors access to all segments of the U.S. stock market. There are almost 3,500 different securities in this portfolio. Expenses amount to just $0.04 for $1,000 invested, or $4 total. Admiral Shares need a minimum initial investment of $3,000.

Capital Income Vanguard Wellesley (VWINX)

Vanguard's balanced fund, VWINX, is an option. It is relatively safe, with a low-risk allocation of roughly 40% stocks and 60% bonds. Long-term investors with a moderate risk tolerance or retirees seeking income and growth may find VWINX a suitable option. VWINX's.23% annual operating expenses are meager for a mutual fund with active management. The starting point investment is $3,000.

To The Vanguard 500 Index (VFIAX)

By holding about 500 of the most extensive U.S. stocks, this index fund follows the S&P 500's performance. If you own shares of VFIAX, you have access to the stock markets of companies like Apple (AAPL), Meta (F.B.), formerly Facebook, Amazon (AMZN), and Alphabet (GOOG, GOOGL), the parent company of Google. When constructing a portfolio that includes other stock funds, such as small- and mid-cap funds, VFIAX is a solid option to consider. VFIAX has a cost-to-invest of 0.04%. Initiation costs are set at $3,000.

A Measure Of The Entire Bond Market, Computed By Vanguard (VBTLX)

Although equities are the standard go-to for long-term investing, most investors should also maintain a holding in bonds. Like other index funds, VBTLX has many advantages. They offer a wide variety of products at reasonable prices. More than nine thousand municipal and corporate bonds issued in the United States make up the VBTLX portfolio. VBTLX has an expense ratio of 0.05%. The starting investment is only $3,000.

Protective Star (VGSTX)

While many fund companies have a $3,000 minimum to open an account, VGSTX requires only $1,000. Additionally, it is a "fund of funds," which means that it invests in other mutual funds. The STAR Fund is a good choice for new investors or those who prefer a simplified investment strategy because it invests in a wide range of Vanguard funds. Vanguard estimates that its 0.31% expense ratio is 62% lower than comparable funds.

Index Of Vanguard's Growth (VIGAX)

VIGAX is a good option for investors willing to take on greater risk in pursuing more significant returns than the broad market indices offered. Large-cap growth equities that have outperformed the S&P 500 over the long term, notably during the past decade, are held by this index fund. VIGAX has a cost of 0.05%. Initiation costs are set at $3,000.

Investing In Vanguard's Broad Market Index (VBIAX)

Balanced mutual funds and exchange-traded funds (ETFs) are relatively new investment strategies, and Vanguard has a small but high-quality range. The stock-bond ratio of VBINX is around 60% to 40%, making it a moderate (medium risk) index. The stock allocation is invested across an all-stock index. The bond allocation is supported across the whole bond market. The cost is 0.07 percent. Initiation costs are set at $3,000.

Conclusion

The company has earned a stellar reputation for its dedication to serving investors of varying goals and comfort levels by regularly introducing new funds with lower expense ratios. Now, Vanguard lists over 410 funds worldwide and manages over $7 trillion in AUM. A few Vanguard funds can be the basis for a complete, low-cost, diversified investing strategy. Vanguard has earned its stellar reputation by providing investors with low-cost mutual funds optimized for long-term success.