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It is never too late to invest in mutual funds for retirement. As such, if you plan to invest in some of the best funds, the Zacks Mutual Fund Rank can provide you with valuable guidance.
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.
Here are the funds that have achieved the Zacks Mutual Fund Rank #1 (Strong Buy) and have low fees.
DFA US Small Cap Value I
(DFSVX): 0.31% expense ratio and 0.28% management fee. DFSVX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion. DFSVX has achieved five-year annual returns of an astounding 14.71%.
Fidelity Advisor Stock Select Allocation Cap C
(FLACX): 1.49% expense ratio and 0.48% management fee. FLACX 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 yearly returns of 12.81% over the last five years, FLACX is an effectively diversified fund with a long reputation of solidly positive performance.
Putnam Equity Income R
(PEQRX) is an attractive large-cap allocation. PEQRX is a Large Cap Value mutual fund, which invests in stocks with a market cap of $10 billion of more, but whose share prices do not reflect their intrinsic value. PEQRX has an expense ratio of 1.13%, management fee of 0.47%, and annual returns of 13.66% over the past five years.
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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This article originally published on Zacks Investment Research (zacks.com).