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.
The easiest, most reliable way to judge a mutual fund's quality over time is by analyzing its performance, diversification, and fees. Our Zacks Rank covers over 19,000 mutual funds has helped us identify three outstanding options that are perfect for any long-term investors' portfolios that is retirement-focused.
Let's break down some of the mutual funds with the highest Zacks Rank and the lowest fees.
If you are looking to diversify your portfolio, consider Alger Capital Appreciation Z (ACAZX). 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. This fund is a winner, boasting an expense ratio of 0.85%, management fee of 0.77%, and a five-year annualized return track record of 13.14%.
T. Rowe Price Capital Opportunity R (RRCOX): 1.18% expense ratio and 0.33% management fee. 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. With yearly returns of 10.3% over the last five years, RRCOX is an effectively diversified fund with a long reputation of solidly positive performance.
Principal Mid Cap R1 (PMSBX). Expense ratio: 1.47%. Management fee: 0.58%. Five year annual return: 10.25%. 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.
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.
Do You Know the Top 9 Retirement Investing Mistakes?
Investing in underperforming mutual funds is just one of the key errors that can derail your retirement plans.
To learn more, read our just-released report: 9 Retirement Mistakes You Need to Avoid.
This report can help you sidestep these costly mistakes and potentially achieve your retirement goals. Get Your FREE Guide Now
Get Your Free (FKASX): Fund Analysis Report
Get Your Free (RRCOX): Fund Analysis Report
Get Your Free (PMSBX): Fund Analysis Report
Get Your Free (ACAZX): Fund Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.