3 Great Mutual Fund Picks for Your Retirement - August 24, 2020
Our "Magnificent Retirement Mutual Funds" list includes some of the best managed and best performing funds around. If you're already invested in these, congratulations! But if you're just now discovering them, don't worry. When it comes to your retirement, it's never too late to start investing in the best.
How can you tell a good mutual fund from a bad one? It's pretty basic: if the fund is diversified, has low fees, and shows strong performance, it's a keeper. Of course, there's a wide range, but using our Zacks Rank, we've found three mutual funds that would be great additions to any long-term retirement investors' portfolios.
Let's break down some of the mutual funds with the highest Zacks Rank and the lowest fees.
Fidelity Advisor Semiconductors A (FELAX): 1.1% expense ratio and 0.54% management fee. FELAX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. With annual returns of 20.48% over the last five years, this fund is a winner.
Oppenheimer Discovery I (ODIIX) is a stand out amongst its peers. ODIIX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With five-year annualized performance of 11.99%, expense ratio of 0.65% and management fee of 0.62%, this diversified fund is an attractive buy with a strong history of performance.
American Funds AMCAP F2 (AMCFX). Expense ratio: 0.45%. Management fee: 0.3%. Five year annual return: 10.39%. AMCFX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks.
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that isn't the case, it might be time to have a conversation or reconsider this vitally important relationship.
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