3 Top-Ranked Mutual Funds for Your Retirement

It is never too late to invest in mutual funds for retirement. As such, if you plan to invest in some of the best funds, the Zacks Mutual Fund Rank can provide you with valuable guidance.

The easiest, most reliable way to judge a mutual fund's quality over time is by analyzing its performance, diversification, and fees. The Zacks Mutual Fund Rank, which covers over 19,000 mutual funds, has helped us identify three outstanding options that are perfect for any long-term investors' portfolios that is retirement-focused.

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

If you are looking to diversify your portfolio, consider Principal Capital Appreciation I (PWCIX). PWCIX 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. This fund is a winner, boasting an expense ratio of 0.45%, management fee of 0.41%, and a five-year annualized return track record of 12.29%.

Fidelity Advisor Small Cap Fund Z (FZAOX): 0.83% expense ratio and 0.82% management fee. FZAOX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities. FZAOX, with annual returns of 9.14% over the last five years, is a well-diversified fund with a long track record of success.

PIMCO RAE US A (PKAAX): 0.81% expense ratio and 0.55% management fee. PKAAX is a Large Cap Value mutual fund, which invests in stocks with a market cap of $10 billion of more, but whose share prices do not reflect their intrinsic value. With a five-year annual return of 15.55%, 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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This article originally published on Zacks Investment Research (zacks.com).

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