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Should You Add These 3 Top-Performing Mutual Funds to Your Portfolio?

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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.

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.

Let's break down some of the mutual funds with the top Zacks Mutual Fund Rank and the lowest fees.

American Beacon Large Cap Value Institutional

(AADEX - Free Report) has a 0.65% expense ratio and 0.55% management fee. AADEX is a part of the Large Cap Value category, and invests in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. With yearly returns of 11.94% over the last five years, this fund clearly wins.

Fuller & Thayler Behavioral Small Cap Investor

(FTHNX - Free Report) . Expense ratio: 1.06%. Management fee: 0.6%. FTHNX is a Small Cap Blend mutual fund that usually targets companies with a market capitalization of less than $2 billion. This fund has managed to produce a robust 14.98% over the last five years.

American Funds Fundamental Investors R5

(RFNFX - Free Report) : 0.32% expense ratio and 0.24% management fee. RFNFX 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 a five-year annual return of 14.02%, this fund is a well-diversified fund with a long track record of success.

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.

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