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3 Top-Ranked Mutual Funds for Your Retirement - December 17, 2019

Zacks Equity Research

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.

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.

If you are looking to diversify your portfolio, consider Fidelity Blue Chip Growth (FBGRX). FBGRX 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. This fund is a winner, boasting an expense ratio of 0.8%, management fee of 0.64%, and a five-year annualized return track record of 12.9%.

Principal Capital Appreciation R4 (PCAPX). Expense ratio: 0.87%. Management fee: 0.47%. PCAPX 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 10.76% over the last five years.

Columbia Seligman Communications and Information Z (CCIZX) is an attractive large-cap allocation. CCIZX 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. CCIZX has an expense ratio of 0.99%, management fee of 0.87%, and annual returns of 17.5% 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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