There is never a wrong time to invest in mutual funds for retirement. So, if you're still looking for the best mutual funds, the Zacks Mutual Fund Rank can be a great guide.
The best way to shortlist great mutual funds is to ensure solid performance, diversification, and low fees. Some are better than others, but utilizing the Zacks Mutual Fund Rank, we have identified three mutual funds that could be solid additions to one's retirement portfolio.
Here are the funds that have achieved the Zacks Mutual Fund Rank #1 (Strong Buy) and have low fees.
If you are looking to diversify your portfolio, consider Brown Advisory Flexible Equity Institutional (BAFFX). BAFFX is an Allocation Balanced mutual fund. Allocation Balanced funds look to invest across asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation. This fund is a winner, boasting an expense ratio of 0.54%, management fee of 0.43%, and a five-year annualized return track record of 10.69%.
T. Rowe Price New America Growth Adviser (PAWAX): 1.06% expense ratio and 0.64% management fee. PAWAX 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. PAWAX, with annual returns of 13.55% over the last five years, is a well-diversified fund with a long track record of success.
State Street Institutional US Equity Investor (SUSIX). Expense ratio: 0.38%. Management fee: 0.37%. Five year annual return: 11.83%. SUSIX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset.
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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