The Baron group of mutual funds, managed by Ron Baron, have delivered outstanding long-term performance by investing in growth stocks. Baron Funds focuses on finding growing small and mid-sized companies with strong competitive advantages. For investors looking to gain exposure to Baron’s investment strategy, here are some steps and tips on how to invest in Baron mutual funds.
Understand Baron’s investment philosophy focused on long-term growth investing
The key to Baron Funds’ success is its long-term investment philosophy centered around buying and holding stocks in fast growing small and mid-sized companies for long periods of time. Ron Baron specifically looks for companies with strong competitive advantages, exceptional management teams, and opportunities for sustained growth over decades.
Identify which Baron mutual fund matches your investment goals
Baron Funds offers a suite of actively managed mutual funds across different asset classes, market caps, and geographies. Determine your investment objectives and risk tolerance first, then select the appropriate Baron mutual fund accordingly. Popular choices are Baron Growth Fund, Baron Small Cap Fund and Baron Opportunity Fund.
Open a brokerage account and invest in the Baron mutual fund
You can invest in Baron mutual funds by opening a brokerage account with leading investment platforms like Fidelity, Vanguard or Charles Schwabb. These allow you to conveniently purchase shares in the Baron fund you select with low trading commissions.
Use dollar-cost averaging to build your position over time
Given the volatility of equity markets, use a dollar-cost averaging strategy to invest fixed dollar amounts in your chosen Baron fund consistently over months and years. This helps avoid trying to time the market.
Hold your Baron mutual fund investment for the long run
To benefit from Ron Baron’s proven long-term growth investing strategy, be prepared to hold your Baron fund investments for extended periods of time, rather than trading in and out. Let your winners compound over decades.
By understanding Baron Funds’ long-term investment philosophy, identifying a suitable Baron mutual fund, opening a trading account, dollar-cost averaging into the fund, and holding for the long term, investors have a blueprint for participating in Baron’s acclaimed approach focused on growing small and mid-cap companies.