Three Best Performing Equity Mutual Funds To Invest In April

U.S. stocks had an awfully bad first six weeks this year in which investors fled from stocks and invested in safe haven assets, including government bonds and gold. A slump in oil prices and volatility running rampant in China’s financial markets dragged the broader markets down.

However, oil prices bounced back in the last one and a half months banking on the possibility of a positive outcome between major oil producers to freeze production levels. A weaker dollar also had a positive impact on oil prices. Meanwhile, China looks a bit better as it moves toward a consumer-driven economy. China’s regulatory measures also raised hopes of a much stable economy.

Coming to the domestic front, Fed Chair Janet Yellen reassured investors that she expects rate hikes to be gradual in the future. These factors collectively helped U.S. stocks to finish one of their best-performing months in March since last October. Given this optimism, investors might look into equity mutual funds that boast strong fundamentals.

Factors Boosting Markets

Weak demand for oil in an over supplied market was primarily responsible for having a negative impact on the broader markets during the beginning of the year. Crude oil dropped below $27 a barrel in mid-February. But, since then, oil prices gained more than 40% ahead of the Apr 17 meeting in Doha where the OPEC and Russia will discuss an output freeze aimed at boosting prices. Additionally, the U.S. dollar has also weakened considerably, which eventually lifted oil prices.

Meanwhile, volatility in China has also reduced considerably as indicated by a rebound in consumer sentiment. China’s official services PMI and Caixin services purchasing managers’ index (PMI) for February remained above the key figure of 50, indicating expansion in service activities. Additionally, retail sales of consumer goods gained 10.2% on a year-over-year basis during the first two months of 2016, according to the National Bureau of Statistics (NBS).