We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Avoid These 3 Mutual Fund Misfires - October 07, 2019
Read MoreHide Full Article
Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new 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.
Below, you'll read about some of the funds included in our current list of "Mutual Fund Misfires of the Market." And if by chance you're invested in any of these misfires, we'll help and review some of our highest Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Nuveen Symphony Floating Rate Income C (NFFCX - Free Report) : 1.81% expense ratio and 0.57% management fee. NFFCX is a High Yield - Bonds fund. Often referred to as junk bonds, High Yield - Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. With a five year after-expenses return of 1.77%, you're mostly paying more in fees than returns.
BNY Mellon International Equity Income M . Expense ratio: 1.09%. Management fee: 0.57%. Over the last 5 years, this fund has generated annual returns of 0.68%.
Oppenheimer SteelPath MLP Alph Plus A (MLPLX - Free Report) : This fund has an expense ratio of 2.8% and management fee of 1.25%. MLPLX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With an annual average return of -10.54% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
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.
Sands Capital Global Growth Institutional (SCMGX - Free Report) : 0.97% expense ratio and 0.85% management fee. SCMGX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With an annual return of 11.07% over the last five years, this fund is a winner.
MFS Mass Investors Growth Stock R2 (MIRGX - Free Report) has an expense ratio of 0.98% and management fee of 0.33%. MIRGX 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. With annual returns of 12.44% over the last five years, this is a well-diversified fund with a long track record of success.
Hartford Stock HLS IA (HSTAX - Free Report) is an attractive fund with a five-year annualized return of 11.31% and an expense ratio of just 0.51%. HSTAX 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.
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.
If you have concerns or any doubts about your investment advisor, read our just-released report:
Image: Bigstock
Avoid These 3 Mutual Fund Misfires - October 07, 2019
Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new 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.
Below, you'll read about some of the funds included in our current list of "Mutual Fund Misfires of the Market." And if by chance you're invested in any of these misfires, we'll help and review some of our highest Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Nuveen Symphony Floating Rate Income C (NFFCX - Free Report) : 1.81% expense ratio and 0.57% management fee. NFFCX is a High Yield - Bonds fund. Often referred to as junk bonds, High Yield - Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. With a five year after-expenses return of 1.77%, you're mostly paying more in fees than returns.
BNY Mellon International Equity Income M . Expense ratio: 1.09%. Management fee: 0.57%. Over the last 5 years, this fund has generated annual returns of 0.68%.
Oppenheimer SteelPath MLP Alph Plus A (MLPLX - Free Report) : This fund has an expense ratio of 2.8% and management fee of 1.25%. MLPLX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With an annual average return of -10.54% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
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.
Sands Capital Global Growth Institutional (SCMGX - Free Report) : 0.97% expense ratio and 0.85% management fee. SCMGX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With an annual return of 11.07% over the last five years, this fund is a winner.
MFS Mass Investors Growth Stock R2 (MIRGX - Free Report) has an expense ratio of 0.98% and management fee of 0.33%. MIRGX 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. With annual returns of 12.44% over the last five years, this is a well-diversified fund with a long track record of success.
Hartford Stock HLS IA (HSTAX - Free Report) is an attractive fund with a five-year annualized return of 11.31% and an expense ratio of just 0.51%. HSTAX 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.
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.
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