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Mutual Fund Misfires of the Market - October 09, 2019
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You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
High fees coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every 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.
Franklin Mutual International C : 1.99% expense ratio and 0.88% management fee. FCMIX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With a five year after-costs return of -0.65%, you're for the most part paying more in charges than returns.
AQR Multi Strategy Alternative N : 2.23% expense ratio, 1.75% management fee. ASANX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. This fund has an annual returns of -0.62% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Lord Abbett Inflation Focused A (LIFAX - Free Report) - 0.69% expense ratio, 0.3% management fee. LIFAX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. LIFAX has generated annual returns of -0.96% 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.
PNC Multi-Factor Large Cap Growth I is a fund that has an expense ratio of 0.65%, and a management fee of 0.55%. PEWIX 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 yearly returns of 11.3% over the last five years, this fund clearly wins.
Janus Henderson Global Life Science S (JFNSX - Free Report) : Expense ratio: 1.19%. Management fee: 0.64%. JFNSX is part of the Sector - Health category, offering investors a focus on the healthcare industry, one of the largest sectors in the American economy. JFNSX has managed to produce a robust 10.51% over the last five years.
Oppenheimer Discovery A (OPOCX - Free Report) has an expense ratio of 1.07% and management fee of 0.63%. OPOCX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. With annual returns of 10.89% over the last five years, this fund is a well-diversified fund with a long track record of success.
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
Mutual Fund Misfires of the Market - October 09, 2019
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
High fees coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every 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.
Franklin Mutual International C : 1.99% expense ratio and 0.88% management fee. FCMIX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With a five year after-costs return of -0.65%, you're for the most part paying more in charges than returns.
AQR Multi Strategy Alternative N : 2.23% expense ratio, 1.75% management fee. ASANX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. This fund has an annual returns of -0.62% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Lord Abbett Inflation Focused A (LIFAX - Free Report) - 0.69% expense ratio, 0.3% management fee. LIFAX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. LIFAX has generated annual returns of -0.96% 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.
PNC Multi-Factor Large Cap Growth I is a fund that has an expense ratio of 0.65%, and a management fee of 0.55%. PEWIX 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 yearly returns of 11.3% over the last five years, this fund clearly wins.
Janus Henderson Global Life Science S (JFNSX - Free Report) : Expense ratio: 1.19%. Management fee: 0.64%. JFNSX is part of the Sector - Health category, offering investors a focus on the healthcare industry, one of the largest sectors in the American economy. JFNSX has managed to produce a robust 10.51% over the last five years.
Oppenheimer Discovery A (OPOCX - Free Report) has an expense ratio of 1.07% and management fee of 0.63%. OPOCX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. With annual returns of 10.89% over the last five years, this fund is a well-diversified fund with a long track record of success.
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