Investing in mutual funds for retirement is never too late. And the Zacks Mutual Fund Rank can be an excellent tool for investors looking to invest in the best funds.
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 investors' portfolios.
Let's break down some of the mutual funds with the top Zacks Mutual Fund Rank and the lowest fees.
American Funds Investor Company of America R6(RICGX) has a 0.26% expense ratio and 0.23% management fee. RICGX 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. With yearly returns of 15.72% over the last five years, this fund clearly wins.
Davis Financial Y(DVFYX). Expense ratio: 0.7%. Management fee: 0.55%. Sector - Finance funds offer a stable, diversified approach to investing that focuses on the financial industry, an infamously large, complex, and heavily-regulated space. This fund has managed to produce a robust 17.98% over the last five years.
BlackRock Global Long/Short Equity I(BDMIX) is an attractive large-cap allocation. BDMIX is a Market Neutral - Equity mutual fund. These funds attempt to maximize returns, and usually hold 50% of their securities in a long position and 50% in a short position. BDMIX has an expense ratio of 1.34%, management fee of 1.2%, and annual returns of 11.59% over the past five years.
There you have it. If your financial advisor had you put your money into any of our top-ranked funds, then they've got you covered. If not, you may need to talk.
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This article originally published on Zacks Investment Research (zacks.com).
