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

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.

If you are looking to diversify your portfolio, consider Fidelity Advisor New Insights I (FINSX). FINSX 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. This fund is a winner, boasting an expense ratio of 0.83%, management fee of 0.64%, and a five-year annualized return track record of 15.66%.

FullerThaler Behav SmallCap A (FTHAX) is a stand out amongst its peers. FTHAX is a Small Cap Blend mutual fund, allowing investors a way to diversify their funds among various types of small-cap stocks. With five-year annualized performance of 15.14%, expense ratio of 1.05% and management fee of 0.6%, this diversified fund is an attractive buy with a strong history of performance.

Franklin US Large Cap Equity I (LMTIX). Expense ratio: 0.8%. Management fee: 0.7%. Five year annual return: 16.2%. LMTIX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset.

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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This article originally published on Zacks Investment Research (zacks.com).

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