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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - October 07, 2019
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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.
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.
TCW International Small Cap N : 1.26% expense ratio and 0.75% management fee. TGNIX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. With a five year after-expenses return of -0.12%, you're mostly paying more in fees than returns.
Oppenheimer SteelPath MLP Alph Plus I (MLPNX - Free Report) : 2.55% expense ratio, 1.25% management fee. MLPNX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. This fund has an annual returns of -9.28% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Hartford Emerging Market Local Debt A (HLDAX - Free Report) - 1.25% expense ratio, 0.85% management fee. This fund has yielded yearly returns of -1.47% in the course of the last five years. Too bad!
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.
Principal Small Cap Growth I Institutional (PGRTX - Free Report) is a fund that has an expense ratio of 1.02%, and a management fee of 1.08%. PGRTX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With yearly returns of 11.57% over the last five years, this fund clearly wins.
Frontier MFG Global Equity Institutional (FMGEX - Free Report) is a stand out fund. FMGEX 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 five-year annualized performance of 10.36% and expense ratio of 0.8%, this diversified fund is an attractive buy with a strong history of performance.
DF Dent Mid Cap Growth Fund (DFDMX - Free Report) has an expense ratio of 0.98% and management fee of 0.75%. DFDMX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With annual returns of 13.34% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
If you have concerns or any doubts about your investment advisor, read our just-released report:
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Does Your Retirement Portfolio Hold 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.
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.
TCW International Small Cap N : 1.26% expense ratio and 0.75% management fee. TGNIX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. With a five year after-expenses return of -0.12%, you're mostly paying more in fees than returns.
Oppenheimer SteelPath MLP Alph Plus I (MLPNX - Free Report) : 2.55% expense ratio, 1.25% management fee. MLPNX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. This fund has an annual returns of -9.28% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Hartford Emerging Market Local Debt A (HLDAX - Free Report) - 1.25% expense ratio, 0.85% management fee. This fund has yielded yearly returns of -1.47% in the course of the last five years. Too bad!
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.
Principal Small Cap Growth I Institutional (PGRTX - Free Report) is a fund that has an expense ratio of 1.02%, and a management fee of 1.08%. PGRTX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With yearly returns of 11.57% over the last five years, this fund clearly wins.
Frontier MFG Global Equity Institutional (FMGEX - Free Report) is a stand out fund. FMGEX 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 five-year annualized performance of 10.36% and expense ratio of 0.8%, this diversified fund is an attractive buy with a strong history of performance.
DF Dent Mid Cap Growth Fund (DFDMX - Free Report) has an expense ratio of 0.98% and management fee of 0.75%. DFDMX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With annual returns of 13.34% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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