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.
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 break down some of the mutual funds with the highest Zacks Rank and the lowest fees.
Alger Capital Appreciation Focus Z (ALZFX): 0.64% expense ratio and 0.52% management fee. ALZFX 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. With annual returns of 16.6% over the last five years, this fund is a winner.
John Hancock2 Mid Cap Stock 1 (JIMSX). Expense ratio: 0.92%. Management fee: 0.83%. JIMSX 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 has managed to produce a robust 14.11% over the last five years.
Lord Abbett Convertible Fund R3 (LCFRX): 1.37% expense ratio and 0.7% management fee. LCFRX is a Convertible Bonds fund, which are unique investment opportunities because they have both fixed income and equity components, making them hybrid securities. The fund is mainly invested in equities, has a long reputation of salutary performance, and has yearly returns of 10.44% over the last five years.
So, there you have it - if your advisor has you invested in any of our "Magnificent Retirement Mutual Funds," they are certainly earning their keep. If not, you may want to look elsewhere.
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