Which of John Hancock's funds are the top ones for retirement? Saving for retirement comes with many decisions to make, which can be overwhelming, especially if you are trying to ensure you have the right asset allocation and a diversified portfolio. There are thousands of investment options from which to choose.
Like many large investment firms, John Hancock, a unit of Canada-based Manulife Financial Corporation, has funds that provide broad exposure to all the asset classes you should include in a retirement portfolio. The right mix of funds depends on your risk tolerance, number of years to retirement and overall financial picture. The following funds offered by John Hancock are among the top choices in different asset classes to consider for your retirement portfolio.
- Large asset managers, like John Hancock, provide a variety of options that make it possible to have a balanced, diversified retirement portfolio with only a handful mutual funds.
- Choosing which funds best fit your retirement portfolio depends on your risk tolerance and time horizon.
- Fund fees have an impact on returns so don’t forget to factor them in.
Don't Overlook Fees
Before we get into the funds, first let’s talk about fees. John Hancock, like all asset managers, operates its funds with different share classes. Each comes with a different fee structure. Some of the classes have front-end loads; others have deferred loads or no loads at all.
All of the funds mentioned below are actively managed. If you decide to invest in one, remember to double check which mutual fund share class you are investing in. Fees can have a big impact on returns.
When investing in U.S. stocks you want to ensure that you are getting broad diversification across large, medium, and small capitalization companies. In order to do this with John Hancock, you should consider the following funds.
The Fundamental Large Cap Core Fund (TAGRX) invests mainly in large-cap, growth and value companies. The Disciplined Value Mid-Cap (JVMAX) will provide exposure to mid-cap stocks, and the Small Cap Value Fund (JSCAX) to small-cap stocks. (All these funds have Class A shares.)
For international exposure you can buy shares in the Disciplined Value International Fund (JDIBX), which invests primarily in large companies in developed countries. If you prefer to also add emerging markets to your portfolio, consider the Emerging Markets Equity Fund (JEMQX). (All these funds have Class A shares.)
John Hancock has a good multi-sector bond fund that will give your portfolio exposure to government and corporate bonds in developed and emerging markets. This fund is the John Hancock Income Fund (JHFIX) and is designed, like its name implies, to produce ongoing income for investors. (This fund is also Class A.)
If you prefer just one fund for both bonds and stocks, you can consider one of John Hancock's asset allocation funds. The John Hancock Balanced Fund Class R4 (JBAFX) has a breakdown of about 60% stocks and 40% bonds and cash.
The Bottom Line
By exploring the options of a company like John Hancock, you can easily save for retirement without having to manage a large number of funds and still achieve diversification and the right asset allocation. Just remember to make sure you invest in the right share class for your needs.