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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - October 10, 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.
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.
SEI Multi-Asset Real Return Fund A (SEIAX - Free Report) : 1% expense ratio and 0.55% management fee. SEIAX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. With a five year after-costs return of -1.44%, you're for the most part paying more in charges than returns.
SA International Value Fund (SAHMX - Free Report) . Expense ratio: 1.12%. Management fee: 0.55%. Over the last 5 years, this fund has generated annual returns of -0.22%.
Leader Short-Term Bond Fund C - 2.16% expense ratio, 0.75% management fee. This fund has yielded yearly returns of -0.54% 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.
Brown Advisory Flexible Equity Institutional (BAFFX - Free Report) : Expense ratio: 0.57%. Management fee: 0.44%. BAFFX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. This fund has achieved five-year annual returns of an astounding 10.58%.
MSIF Growth Portfolio L (MSHLX - Free Report) has an expense ratio of 1.31% and management fee of 0.41%. MSHLX 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 annual returns of 16.72% over the last five years, this is a well-diversified fund with a long track record of success.
MassMutual Select Growth Opportunity I (MMAZX - Free Report) is an attractive fund with a five-year annualized return of 11.74% and an expense ratio of just 0.75%. MMAZX 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.
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:
Image: Bigstock
3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - October 10, 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.
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.
SEI Multi-Asset Real Return Fund A (SEIAX - Free Report) : 1% expense ratio and 0.55% management fee. SEIAX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. With a five year after-costs return of -1.44%, you're for the most part paying more in charges than returns.
SA International Value Fund (SAHMX - Free Report) . Expense ratio: 1.12%. Management fee: 0.55%. Over the last 5 years, this fund has generated annual returns of -0.22%.
Leader Short-Term Bond Fund C - 2.16% expense ratio, 0.75% management fee. This fund has yielded yearly returns of -0.54% 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.
Brown Advisory Flexible Equity Institutional (BAFFX - Free Report) : Expense ratio: 0.57%. Management fee: 0.44%. BAFFX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. This fund has achieved five-year annual returns of an astounding 10.58%.
MSIF Growth Portfolio L (MSHLX - Free Report) has an expense ratio of 1.31% and management fee of 0.41%. MSHLX 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 annual returns of 16.72% over the last five years, this is a well-diversified fund with a long track record of success.
MassMutual Select Growth Opportunity I (MMAZX - Free Report) is an attractive fund with a five-year annualized return of 11.74% and an expense ratio of just 0.75%. MMAZX 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.
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