As a finance expert, I often get asked whether MassMutual mutual funds are a good investment. The answer depends on multiple factors—performance history, fees, risk tolerance, and investment goals. In this analysis, I dissect MassMutual’s mutual fund offerings, compare them to competitors, and help you decide if they fit your portfolio.
Table of Contents
Understanding MassMutual Mutual Funds
MassMutual (Massachusetts Mutual Life Insurance Company) offers a range of mutual funds through its subsidiary, MML Investment Services. These funds span different asset classes, including:
- Equity Funds (e.g., MassMutual Select Mid Cap Growth)
- Fixed Income Funds (e.g., MassMutual Select Core Bond)
- Balanced Funds (e.g., MassMutual Select Balanced)
- International Funds (e.g., MassMutual Select International Equity)
Performance Analysis
To assess whether MassMutual mutual funds are good, I examine their historical returns against benchmarks. For example, the MassMutual Select Mid Cap Growth Fund (MEFZX) has a 10-year annualized return of 10.2\%, slightly below the Russell Midcap Growth Index’s 11.1\%.
| Fund Name (Ticker) | 5-Yr Return | 10-Yr Return | Expense Ratio | Benchmark Return |
|---|---|---|---|---|
| MEFZX (Mid Cap Growth) | 9.5\% | 10.2\% | 0.85\% | 11.1\% |
| MMCBX (Core Bond) | 3.1\% | 3.4\% | 0.70\% | 3.6\% |
Data as of latest annual report; benchmark = Russell Midcap Growth (MEFZX), Bloomberg U.S. Aggregate (MMCBX).
Expense Ratios and Fees
MassMutual’s expense ratios range from 0.50\% to 1.20\%, which is moderate but not the lowest. For comparison, Vanguard’s average equity fund fee is 0.10\%. High fees erode returns over time.
Example: A \$10,000 investment growing at 7\% annually for 30 years:
- With a 0.20\% fee: Final value = \$74,016
- With a 0.85\% fee: Final value = \$57,434
The difference (\$16,582) shows how fees compound.
Comparing MassMutual to Competitors
Against Vanguard and Fidelity
| Fund Provider | Avg. Expense Ratio | Avg. 10-Yr Return | Minimum Investment |
|---|---|---|---|
| MassMutual | 0.75\% | 7.8\% | \$2,500 |
| Vanguard | 0.10\% | 8.5\% | \$3,000 |
| Fidelity | 0.45\% | 8.2\% | \$0 |
MassMutual lags in cost efficiency but offers decent returns.
Tax Efficiency
MassMutual funds are not the most tax-efficient. Many are actively managed, leading to higher capital gains distributions than index funds.
Who Should Invest in MassMutual Mutual Funds?
- Investors Seeking Active Management – If you believe in MassMutual’s stock-picking strategy, these funds may suit you.
- Participants in Employer-Sponsored Plans – Many 401(k) plans include MassMutual funds, limiting alternatives.
- Investors Willing to Pay for Moderate Performance – If low-cost index funds aren’t a priority, MassMutual is a viable choice.
Final Verdict
MassMutual mutual funds deliver average performance with moderate fees. They aren’t the best for cost-conscious investors but can fit certain portfolios. Before investing, compare them to low-cost index funds and assess whether the extra fees justify potential outperformance—which, historically, they haven’t consistently.
