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3 Great Mutual Fund Picks for Your Retirement - January 23, 2020

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Our "Magnificent Retirement Mutual Funds" list includes some of the best managed and best performing funds around. If you're already invested in these, congratulations! But if you're just now discovering them, don't worry. When it comes to your retirement, it's never too late to start investing in the best.

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 learn about some of Zacks' highest ranked mutual funds with low fees you may want to consider.

MFS New Discovery R3 (MNDHX) has a 1.3% expense ratio and 0.88% management fee. MNDHX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. With yearly returns of 13.15% over the last five years, this fund clearly wins.

American Funds Growth Fund of America R4 (RGAEX) is a stand out amongst its peers. RGAEX 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. With five-year annualized performance of 12.35%, expense ratio of 0.67% and management fee of 0.27%, this diversified fund is an attractive buy with a strong history of performance.

T. Rowe Price Cap Appreciation Adviser (PACLX - Free Report) . Expense ratio: 0.99%. Management fee: 0.59%. Five year annual return: 10.21%. PACLX is categorized as an All Cap Value fund, and like the name suggests, invests across the cap spectrum in small-cap, mid-cap, and large-cap companies.

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.

Do You Know the Top 9 Retirement Investing Mistakes?

Investing in underperforming mutual funds is just one of the key errors that can derail your retirement plans.

To learn more, read our just-released report: 9 Retirement Mistakes You Need to Avoid.


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