If you're invested in any of the funds in our "Magnificent Retirement Mutual Funds" list, congratulations on owning some of the best managed and top-performing mutual funds. If you are lucky enough to discover our list of Top-Ranked Funds for the first time, it's never too late to start investing with the best, especially when it comes to your retirement.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance, diversification, and fees. Using our Zacks Rank of over 19,000 mutual funds, we've identified three outstanding mutual funds that are ideally suited to help long-term investors pursue and achieve their retirement investing goals.
Let's break down some of the mutual funds with the highest Zacks Rank and the lowest fees.
Columbia Seligman Communications and Information Z (CCIZX): 0.99% expense ratio and 0.87% management fee. With a much more diversified approach, CCIZX--part of the Sector - Tech mutual fund category--gives investors a way to own a stake in the notoriously risky tech sector. With annual returns of 17.5% over the last five years, this fund is a winner.
MFS Mass Investors Growth Stock I (MGTIX) is a stand out amongst its peers. MGTIX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. With five-year annualized performance of 13.9%, expense ratio of 0.48% and management fee of 0.33%, this diversified fund is an attractive buy with a strong history of performance.
Principal Capital Appreciation R4 (PCAPX): 0.87% expense ratio and 0.47% management fee. PCAPX 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. The fund is mainly invested in equities, has a long reputation of salutary performance, and has yearly returns of 10.76% over the last five years.
These examples highlight the fact that there are some astonishingly good mutual funds out there. If your advisor has you in the good ones, bravo! If not, you may need to have a talk.
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