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3 Mutual Fund Misfires to Avoid - October 07, 2019
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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.
Roumell Opportunistic Value Institutional (RAMSX - Free Report) : Expense ratio: 1.23%. Management fee: 0.92%. After expenses, the 5 year return is 0.91%, meaning your fees are far higher than the fund's returns.
Templeton Global Total Return C (TTRCX - Free Report) : 1.41% expense ratio, 0.61% management fee. TTRCX is a Diversified Bonds investment option; these funds give investors exposure to a variety of fixed income types that span across different issuers, maturities, and credit levels. This fund has an annual returns of 1.25% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Oppenheimer SteelPath MLP Alph Plus C (MLPMX - Free Report) : Expense ratio: 3.55%. Management fee: 1.25%. MLPMX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With annual returns of just -10.19%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
Hartford Stock HLS IB (HIBSX - Free Report) is a fund that has an expense ratio of 0.76%, and a management fee of 0.48%. HIBSX 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 11.03% over the last five years, this fund clearly wins.
Janus Henderson Global Technology T (JAGTX - Free Report) has an expense ratio of 0.93% and management fee of 0.64%. JAGTX is part of the Sector - Tech mutual fund category that invests in technology and lets investors own a stake in a notoriously volatile sector, but with a much more diversified approach. Thanks to yearly returns of 18.1% over the last five years, JAGTX is an effectively diversified fund with a long reputation of solidly positive performance.
Emerald Growth Fund Investor (FFGRX - Free Report) has an expense ratio of 1.04% and management fee of 0.56%. FFGRX 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. With annual returns of 10.54% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
If you have concerns or any doubts about your investment advisor, read our just-released report:
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3 Mutual Fund Misfires to Avoid - October 07, 2019
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.
Roumell Opportunistic Value Institutional (RAMSX - Free Report) : Expense ratio: 1.23%. Management fee: 0.92%. After expenses, the 5 year return is 0.91%, meaning your fees are far higher than the fund's returns.
Templeton Global Total Return C (TTRCX - Free Report) : 1.41% expense ratio, 0.61% management fee. TTRCX is a Diversified Bonds investment option; these funds give investors exposure to a variety of fixed income types that span across different issuers, maturities, and credit levels. This fund has an annual returns of 1.25% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Oppenheimer SteelPath MLP Alph Plus C (MLPMX - Free Report) : Expense ratio: 3.55%. Management fee: 1.25%. MLPMX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With annual returns of just -10.19%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
Hartford Stock HLS IB (HIBSX - Free Report) is a fund that has an expense ratio of 0.76%, and a management fee of 0.48%. HIBSX 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 11.03% over the last five years, this fund clearly wins.
Janus Henderson Global Technology T (JAGTX - Free Report) has an expense ratio of 0.93% and management fee of 0.64%. JAGTX is part of the Sector - Tech mutual fund category that invests in technology and lets investors own a stake in a notoriously volatile sector, but with a much more diversified approach. Thanks to yearly returns of 18.1% over the last five years, JAGTX is an effectively diversified fund with a long reputation of solidly positive performance.
Emerald Growth Fund Investor (FFGRX - Free Report) has an expense ratio of 1.04% and management fee of 0.56%. FFGRX 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. With annual returns of 10.54% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
If you have concerns or any doubts about your investment advisor, read our just-released report:
4 Warning Signs That Your Advisor Might be Sabotaging Your Financial Future