If you're invested in any of the funds in our "Magnificent Retirement Mutual Funds" list, congratulations on owning some of the best managed and top-performing mutual funds. If you are lucky enough to discover our list of Top-Ranked Funds for the first time, it's never too late to start investing with the best, especially when it comes to your retirement.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance, diversification, and fees. Using our Zacks Rank of over 19,000 mutual funds, we've identified three outstanding mutual funds that are ideally suited to help long-term investors pursue and achieve their retirement investing goals.
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 VY T. Rowe Price Diversified Mid Cap Growth S2 (IAXTX). IAXTX 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 1.18%, management fee of 0.74%, and a five-year annualized return track record of 12.2%.
TIAA-CREF Social Choice Equity Retirement (TRSCX). Expense ratio: 0.42%. Management fee: 0.15%. TRSCX 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. This fund has managed to produce a robust 10.43% over the last five years.
American Funds Growth Fund of America R6 (RGAGX): 0.32% expense ratio and 0.27% management fee. RGAGX 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 a five-year annual return of 12.74%, this fund is a well-diversified fund with a long track record of success.
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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