The funds in our "Magnificent Retirement Mutual Funds" list are some of the top-performing, best managed funds available. If you're already invested in them, congratulations! If you're not, don't worry - it's never too late to start getting the advantages of these outstanding funds for 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.
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 AB Discovery Growth Z (CHCZX). CHCZX 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. This fund is a winner, boasting an expense ratio of 0.65%, management fee of 0.61%, and a five-year annualized return track record of 12.77%.
John Hancock2 Capital Appreciation 1 (JICPX): 0.79% expense ratio and 0.7% management fee. JICPX 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 yearly returns of 16.82% over the last five years, JICPX is an effectively diversified fund with a long reputation of solidly positive performance.
American Century Fundamental Equity R (AFDRX). Expense ratio: 1.3%. Management fee: 0.84%. Five year annual return: 10.13%. AFDRX 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.
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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