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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - 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 plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
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.
Hartford International Small Company R5 : This fund has an expense ratio of 1.05% and a management fee of 0.9%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. HNSTX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
AB Allocation Market Real Return Advisor (AMTYX - Free Report) : AMTYX 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. AMTYX offers an expense ratio of 1.01% and annual returns of -3.92% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
TCW Emerging Markets Local Currency Income N (TGWNX - Free Report) - 0.93% expense ratio, 0.75% management fee. TGWNX 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. TGWNX has generated annual returns of -0.03% over the last five years. Ouch!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
MSIFT Mid Cap Growth Portfolio I (MPEGX - Free Report) is a winner, with an expense ratio of just 0.71% and a five-year annualized return track record of 12.94%.
Principal Blue Chip Fund A (PBLAX - Free Report) has an expense ratio of 0.99% and management fee of 0.66%. PBLAX 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. Thanks to yearly returns of 13.19% over the last five years, PBLAX is an effectively diversified fund with a long reputation of solidly positive performance.
MFS Growth Fund A (MFEGX - Free Report) is an attractive fund with a five-year annualized return of 12.89% and an expense ratio of just 0.91%. MFEGX is an All Cap Growth mutual fund investing in a wide variety of equities, no matter the size of the company and as long as the firm exhibits growth characteristics.
Bottom Line
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
If you have concerns or any doubts about your investment advisor, read our just-released report:
Image: Bigstock
Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - 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 plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
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.
Hartford International Small Company R5 : This fund has an expense ratio of 1.05% and a management fee of 0.9%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. HNSTX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
AB Allocation Market Real Return Advisor (AMTYX - Free Report) : AMTYX 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. AMTYX offers an expense ratio of 1.01% and annual returns of -3.92% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
TCW Emerging Markets Local Currency Income N (TGWNX - Free Report) - 0.93% expense ratio, 0.75% management fee. TGWNX 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. TGWNX has generated annual returns of -0.03% over the last five years. Ouch!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
MSIFT Mid Cap Growth Portfolio I (MPEGX - Free Report) is a winner, with an expense ratio of just 0.71% and a five-year annualized return track record of 12.94%.
Principal Blue Chip Fund A (PBLAX - Free Report) has an expense ratio of 0.99% and management fee of 0.66%. PBLAX 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. Thanks to yearly returns of 13.19% over the last five years, PBLAX is an effectively diversified fund with a long reputation of solidly positive performance.
MFS Growth Fund A (MFEGX - Free Report) is an attractive fund with a five-year annualized return of 12.89% and an expense ratio of just 0.91%. MFEGX is an All Cap Growth mutual fund investing in a wide variety of equities, no matter the size of the company and as long as the firm exhibits growth characteristics.
Bottom Line
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
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