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.
Here are the funds that have achieved the #1 (Strong Buy) Zacks Rank and have low fees.
If you are looking to diversify your portfolio, consider American Funds Growth Fund of America R2E (RGEBX). RGEBX 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 1.12%, management fee of 0.27%, and a five-year annualized return track record of 11.88%.
AMG Frontier Small Cap Growth Z (MSSYX): 0.9% expense ratio and 0.7% management fee. MSSYX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. MSSYX, with annual returns of 10.34% over the last five years, is a well-diversified fund with a long track record of success.
Diamond Hill Large Cap Fund Y (DHLYX). Expense ratio: 0.55%. Management fee: 0.5%. Five year annual return: 11.55%. DHLYX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset.
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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