Back to top

Image: Bigstock

3 Top-Performing Mutual Funds to Consider for Your Retirement Portfolio

Read MoreHide Full Article

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.

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 retirement investors' portfolios.

Here are the funds that have achieved the Zacks Mutual Fund Rank #1 (Strong Buy) and have low fees.

Franklin Convertible Securities Adviser

(FCSZX - Free Report) has a 0.57% expense ratio and 0.46% management fee. FCSZX is a Convertible Bonds mutual fund, and these funds are unique in the fixed income world; these securities have components of both fixed income and equity, making them hybrid securities. With yearly returns of 13.83% over the last five years, this fund clearly wins.

Fidelity Equity-Income Fund K

(FEIKX - Free Report) is a stand out amongst its peers. FEIKX 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. With five-year annualized performance of 16.41%, expense ratio of 0.46% and management fee of 0.45%, this diversified fund is an attractive buy with a strong history of performance.

VY T. Rowe Price Diversified Mid Cap Growth Investor

(IAXIX - Free Report) : 0.8% expense ratio and 0.74% management fee. IAXIX 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. The fund is mainly invested in equities, has a long reputation of salutary performance, and has yearly returns of 15% over the last 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.

Published in