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 take a look at some of the highest Zacks Ranked mutual funds with the lowest fees.
Alger Capital Appreciation Z (ACAZX): 0.85% expense ratio and 0.77% management fee. ACAZX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. ACAZX has achieved five-year annual returns of an astounding 13.14%.
T. Rowe Price Capital Opportunity R (RRCOX). Expense ratio: 1.18%. Management fee: 0.33%. RRCOX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. This fund has managed to produce a robust 10.3% over the last five years.
Principal Mid Cap R1 (PMSBX) is an attractive large-cap allocation. PMSBX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. PMSBX has an expense ratio of 1.47%, management fee of 0.58%, and annual returns of 10.25% over the past five years.
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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