3 Top-Ranked Mutual Funds for Your Retirement (2024)

Zacks Equity Research

April 27, 2023 at 3:00 PM·2 min read

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.

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.

Columbia Dividend Income Fund Class I (GSFTX): 0.65% expense ratio and 0.53% management fee. GSFTX 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. GSFTX has achieved five-year annual returns of an astounding 10.05%.

Voya Growth & Income Portfolio A (IAVGX): 1.11% expense ratio and 0.6% management fee. IAVGX 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 yearly returns of 11.39% over the last five years, IAVGX is an effectively diversified fund with a long reputation of solidly positive performance.

MainStay Large Cap Growth R1 (MLRRX). Expense ratio: 0.81%. Management fee: 0.61%. Five year annual return: 11.22%. MLRRX 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.

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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