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Mutual Fund Misfires of the Market - March 31, 2020
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If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your advisor.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Invesco Global Mkt Neutral Fd Cl A : Expense ratio: 1.49%. Management fee: 0.95%. After expenses, the 5 year return is -5.02%, meaning your fees are far higher than the fund's returns.
Catalyst MLP & Infrastructure C (MLXCX - Free Report) . Expense ratio: 2.43%. Management fee: 0.95%. Over the last 5 years, this fund has generated annual returns of -7.6%.
Goodwood SMID Cap Long/Short Institutional - 1.35% expense ratio, 0.84% management fee. GAMIX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. GAMIX has generated annual returns of -2.04% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
BlackRock Advantage Large Cap Growth R (BMCRX - Free Report) : 1.12% expense ratio and 0.57% management fee. BMCRX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. With an annual return of 11.83% over the last five years, this fund is a winner.
MassMutual Select Small Cap Growth Equity I (MSGZX - Free Report) has an expense ratio of 0.86% and management fee of 0.8%. MSGZX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. Thanks to yearly returns of 10.98% over the last five years, MSGZX is an effectively diversified fund with a long reputation of solidly positive performance.
Oppenheimer Gold & Special Mineral Y (OGMYX - Free Report) : Expense ratio: 0.92%. Management fee: 0.68%. OGMYX is classified as a Sector - Precious Metal fund, and these mutual funds invest in stocks with a focus on the mining and production of precious metals like gold, silver, platinum, and palladium. OGMYX has produced a 11.5% over the last five years.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
Do You Know the Top 9 Retirement Investing Mistakes?
Whether you're planning to retire early or not, don't let investing mistakes derail your plans.
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Mutual Fund Misfires of the Market - March 31, 2020
If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your advisor.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Invesco Global Mkt Neutral Fd Cl A : Expense ratio: 1.49%. Management fee: 0.95%. After expenses, the 5 year return is -5.02%, meaning your fees are far higher than the fund's returns.
Catalyst MLP & Infrastructure C (MLXCX - Free Report) . Expense ratio: 2.43%. Management fee: 0.95%. Over the last 5 years, this fund has generated annual returns of -7.6%.
Goodwood SMID Cap Long/Short Institutional - 1.35% expense ratio, 0.84% management fee. GAMIX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. GAMIX has generated annual returns of -2.04% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
BlackRock Advantage Large Cap Growth R (BMCRX - Free Report) : 1.12% expense ratio and 0.57% management fee. BMCRX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. With an annual return of 11.83% over the last five years, this fund is a winner.
MassMutual Select Small Cap Growth Equity I (MSGZX - Free Report) has an expense ratio of 0.86% and management fee of 0.8%. MSGZX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. Thanks to yearly returns of 10.98% over the last five years, MSGZX is an effectively diversified fund with a long reputation of solidly positive performance.
Oppenheimer Gold & Special Mineral Y (OGMYX - Free Report) : Expense ratio: 0.92%. Management fee: 0.68%. OGMYX is classified as a Sector - Precious Metal fund, and these mutual funds invest in stocks with a focus on the mining and production of precious metals like gold, silver, platinum, and palladium. OGMYX has produced a 11.5% over the last five years.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
Do You Know the Top 9 Retirement Investing Mistakes?
Whether you're planning to retire early or not, don't let investing mistakes derail your plans.
If you have $500,000 or more to invest and want to learn more, click the link to download our free report, 9 Retirement Mistakes that will Ruin Your Retirement.