Back to top

Image: Bigstock

Should You Add These 3 Top-Performing Mutual Funds to Your Portfolio? - February 18, 2020

Read MoreHide Full Article

If you're invested in any of the funds in our "Magnificent Retirement Mutual Funds" list, congratulations on owning some of the best managed and top-performing mutual funds. If you are lucky enough to discover our list of Top-Ranked Funds for the first time, it's never too late to start investing with the best, especially when it comes to your retirement.

Great performance, diversification, and low fees: it's a pretty simple formula for a great mutual fund. Some are better than others, but utilizing our Zacks Rank, we have identified three mutual funds that would make great additions to long-term investors' portfolios.

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

Nationwide Growth Fund A (NMFAX - Free Report) has a 0.9% expense ratio and 0.6% management fee. NMFAX 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 yearly returns of 11.76% over the last five years, this fund clearly wins.

Dreyfus/Boston Small/Mid-Cap Growth I (SDSCX - Free Report) : 0.74% expense ratio and 0.6% management fee. SDSCX 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. SDSCX, with annual returns of 13.43% over the last five years, is a well-diversified fund with a long track record of success.

Brown Advisory Flexible Equity Investor (BIAFX - Free Report) : 0.72% expense ratio and 0.44% management fee. BIAFX 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. With a five-year annual return of 11.49%, this fund is a well-diversified fund with a long track record of success.

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.

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.

Published in