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.
The easiest, most reliable way to judge a mutual fund’s quality over time is by analyzing its performance, diversification, and fees. The Zacks Mutual Fund Rank, which 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.
Let’s take a look at some of our top-ranked mutual funds with the lowest fees.
Undiscovered Managers Behavioral Value I (UBVSX): 0.98% expense ratio and 0.75% management fee. UBVSX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion. With annual returns of 18.45% over the last five years, this fund is a winner.
State Street Institutional Small-Cap Equity Service Class (SSQSX): 1% expense ratio and 0.89% management fee. SSQSX is an All Cap Growth mutual fund investing in a wide variety of equities, no matter the size of the company and as long as the firm exhibits growth characteristics. With yearly returns of 10.01% over the last five years, SSQSX is an effectively diversified fund with a long reputation of solidly positive performance.
American Funds Mutual Fund R6 (RMFGX). Expense ratio: 0.26%. Management fee: 0.23%. Five year annual return: 12.8%. RMFGX is a Large Cap Value fund. These funds invest in stocks with a market cap of $10 billion of more, but whose share prices do not reflect their intrinsic value.
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).