Investing in mutual funds for retirement is never too late. And the Zacks Mutual Fund Rank can be an excellent tool for investors looking to invest in the best funds.
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 investors’ portfolios.
Let’s break down some of the mutual funds with the top Zacks Mutual Fund Rank and the lowest fees.
American Funds AMCAP F (AMPFX): 0.7% expense ratio and 0.29% management fee. AMPFX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. With annual returns of 12.41% over the last five years, this fund is a winner.
Invesco Technology Fund R5 (FTPIX): 0.74% expense ratio and 0.62% management fee. FTPIX is part of the Sector – Tech mutual fund category that invests in technology and lets investors own a stake in a notoriously volatile sector, but with a much more diversified approach. With yearly returns of 13.04% over the last five years, FTPIX is an effectively diversified fund with a long reputation of solidly positive performance.
Neuberger Berman Mid Cap Growth Adviser (NBMBX) is an attractive large-cap allocation. NBMBX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. NBMBX has an expense ratio of 1.18%, management fee of 0.89%, and annual returns of 11.43% over the past five years.
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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This article originally published on Zacks Investment Research (zacks.com).