There is never a wrong time to invest in mutual funds for retirement. So, if you’re still looking for the best mutual funds, the Zacks Mutual Fund Rank can be a great guide.
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 the Zacks Mutual Fund 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 top Zacks Mutual Fund Rank and the lowest fees.
If you are looking to diversify your portfolio, consider Brown Advisory Sustainable Growth Investor (BIAWX). BIAWX 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 0.78%, management fee of 0.53%, and a five-year annualized return track record of 12.28%.
BNY Mellon Appreciation Investor (DGAGX). Expense ratio: 0.89%. Management fee: 0.55%. DGAGX 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 has managed to produce a robust 10.45% over the last five years.
Fidelity Advisor Convertible Security Institutional (FICVX). Expense ratio: 0.75%. Management fee: 0.55%. Five year annual return: 11.26%. FICVX is categorized as a Convertible Bonds fund, and in the fixed income world, these funds are quite unique. These types of securities are a hybrid, meaning they have components of both fixed income and equity.
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.