Vanguard is among the most popular investment management firms. The company has established a distinguished presence with its revolutionary idea. Vanguard’s unique structure is that no outside parties should own their mutual funds. Its founder, John C. Bogle, established Vanguard mutual fund company that belonged solely to the clients and had no third-party intervention. Vanguard released the world’s first index mutual fund and today one can explore a range of Vanguard funds to invest in.

Overview of Vanguard funds
Vanguard maintains a low expense ratio for its active products and Vanguard index funds. Typically, they offer the same index product structured as mutual funds or Vanguard exchange-traded funds (ETFs).

Broadly, Vanguard has more than 100 mutual funds, which are classified as:

• International
• Bond
• Balanced
• Sector or Specialty
• Stock
• Bonds

The balanced Vanguard funds include both stock and bond mixes. Many products under this category are target date funds. So, they auto-adapt to a conservative mix as the investor’s planned retirement date is around. All Vanguard ETFs are passively managed. Like mutual funds, even ETFs utilize index replication, whereas others employ sampling. When Vanguard index funds comprise thousands of components, sampling may cut the trading cost while monitoring the performance of more Vanguard funds.

The Vanguard ETF roster includes products in these categories:

• Stock
• Bond
• International
• Sector-specific

Features and benefits
Investing in Vanguard funds gives one the flexibility to pick from diverse mutual funds. So, investors can build a diversified investment portfolio. Vanguard funds come with various features and benefits.

Diversification
Investors have an option to put their money in different assets, such as stocks, bonds, or any other security. So, one can form a strong portfolio without the hassle of managing it themselves.

Low fees
Vanguard offers various types of low-cost investments. Research studies suggest their expense ratios across different mutual funds and ETFs are approximately 83 percent less than the industry average. So, by investing in Vanguard funds, one can save big on the fees.

Wide choice
Vanguard has an extensive range of mutual funds. Some top options include:

• Index funds
• Vanguard Funds for Retirees
• ESG funds
• Actively Managed Funds

Apart from this, investors can also pick between Active Management and Passive Management. So, one can customize their portfolio by investing in funds that appeal to them.

High returns
Vanguard mutual funds are famous for their steady performance. In the last decade, 93 percent of its no-load funds outperformed the peer-group averages.

Tax efficiency
Vanguard funds are quite tax-efficient for investment. Along with tax-saving investment funds, the company offers various strategies to help reduce taxes.

Professional management
The fund managers cautiously choose investments. They also follow a consistent investment approach. Vanguard’s client-first focus makes its funds a popular choice.

No minimum investment requirement
Unlike the typical mutual funds, one needs no minimum amount to invest in some Vanguard bonds, stocks, and ETFs. Most top-performing mutual funds require a minimum $3000 investment to get started.

Personal attention
As the account grows, one will see the costs decrease. Further, the constant advice and personalization by Vanguard’s investment advisors make it an appealing option.

How to invest in Vanguard funds
Vanguard offers multiple alternatives to add their funds to one’s portfolio. One can follow some simple steps to invest in Vanguard funds.

Open an account with Vanguard

• Visit the homepage of Vanguard’s website
• Search “buy funds”
• Alternatively, hover to the “Buy Vanguard Funds” page
• Enter the login details.
• Choose the preferred account to use for making the purchase
• Finally, follow the steps featured online and pick from various funds

Buy Vanguard mutual funds in the retirement plan
Many people put Vanguard funds in their preferred investments under the employer-sponsored retirement plan. Such individuals should look for the dedicated Vanguard funds for retirees through their retirement account.

Open the online brokerage account
Finally, open a brokerage account to put money in mutual funds from other companies. One can select mutual funds from different companies to include in their portfolio.

Types of Vanguard funds

LifeStrategy Funds
Such funds comprise a diverse mix of bonds and stocks. One can choose these as per their investment horizon and risk-bearing ability.

Target Retirement Funds
These are meant for retirement planning. Such funds auto-adjust their asset allocation as retirement age comes closer.

Index Funds
These are meant for individual investors. Vanguard index funds track specific market indices and offer broad market exposure and low cost.

Active Funds
Professional portfolio managers manage these funds. Active funds aspire to outperform the market via bond selection and active stock.

ETFs
Vanguard ETFs offer diversification with lower investment minimums and real-time pricing. Investors bear a $0 commission to trade them online.

Environmental, Social, and Governance Funds
This type of funds consider ethical and sustainability factors in investment decisions.

Money Market Funds
By investing in these funds, one’s money is put in short-term, low-risk securities. Money market funds are best for earning stable returns or preserving capital.