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.
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 learn about some of Zacks' highest ranked mutual funds with low fees you may want to consider.
If you are looking to diversify your portfolio, consider Fidelity Advisor Diversified Stock O (FDESX). FDESX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. This fund is a winner, boasting an expense ratio of 0.46%, management fee of 0.41%, and a five-year annualized return track record of 10.64%.
MSIF Small Company Growth Portfolio I (MSSGX). Expense ratio: 0.99%. Management fee: 0.92%. MSSGX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. This fund has managed to produce a robust 15.08% over the last five years.
Principal Large Cap Growth I R5 (PPUPX). Expense ratio: 0.85%. Management fee: 0.6%. Five year annual return: 16.19%. PPUPX 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.
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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