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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - October 14, 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.
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.
Boston Partners Long/Short Equity Investor (BPLEX - Free Report) : 2.69% expense ratio and 2.25% management fee. BPLEX is a Long Short - Equity option. These funds' investment strategy consists of minimizing overall market exposure, while at the same time taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. With a five year after-costs return of -0.48%, you're for the most part paying more in charges than returns.
Franklin Mutual International A : FMIAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. FMIAX offers an expense ratio of 1.22% and annual returns of -0.6% 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.
MainStay Unconstrained Bond C (MSICX - Free Report) : This fund has an expense ratio of 2.04% and management fee of 0.57%. MSICX is a Diversified Bonds mutual fund. Investors looking for exposure to a variety of fixed income types that stretch across issuers, maturities, and credit levels will find a good fit with Diversified Bonds funds. With an annual average return of 1.38% 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.
BlackRock Science & Technology Opportunities A (BGSAX - Free Report) : Expense ratio: 1.17%. Management fee: 0.82%. BGSAX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. This fund has achieved five-year annual returns of an astounding 18.61%.
JPMorgan Large Cap Growth C (OLGCX - Free Report) has an expense ratio of 1.43% and management fee of 0.5%. OLGCX 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 13.36% over the last five years, this is a well-diversified fund with a long track record of success.
Wells Fargo Utility & Telecom I (EVUYX - Free Report) is an attractive fund with a five-year annualized return of 11.03% and an expense ratio of just 0.86%. EVUYX is a Sector - Utilities mutual fund, focusing on companies that provide essential services such as electric power, gas distribution, and water supply to millions of people on a daily basis. Overall, the utility industry is known for its stability and reduced volatility.
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:
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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - October 14, 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.
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.
Boston Partners Long/Short Equity Investor (BPLEX - Free Report) : 2.69% expense ratio and 2.25% management fee. BPLEX is a Long Short - Equity option. These funds' investment strategy consists of minimizing overall market exposure, while at the same time taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. With a five year after-costs return of -0.48%, you're for the most part paying more in charges than returns.
Franklin Mutual International A : FMIAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. FMIAX offers an expense ratio of 1.22% and annual returns of -0.6% 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.
MainStay Unconstrained Bond C (MSICX - Free Report) : This fund has an expense ratio of 2.04% and management fee of 0.57%. MSICX is a Diversified Bonds mutual fund. Investors looking for exposure to a variety of fixed income types that stretch across issuers, maturities, and credit levels will find a good fit with Diversified Bonds funds. With an annual average return of 1.38% 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.
BlackRock Science & Technology Opportunities A (BGSAX - Free Report) : Expense ratio: 1.17%. Management fee: 0.82%. BGSAX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. This fund has achieved five-year annual returns of an astounding 18.61%.
JPMorgan Large Cap Growth C (OLGCX - Free Report) has an expense ratio of 1.43% and management fee of 0.5%. OLGCX 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 13.36% over the last five years, this is a well-diversified fund with a long track record of success.
Wells Fargo Utility & Telecom I (EVUYX - Free Report) is an attractive fund with a five-year annualized return of 11.03% and an expense ratio of just 0.86%. EVUYX is a Sector - Utilities mutual fund, focusing on companies that provide essential services such as electric power, gas distribution, and water supply to millions of people on a daily basis. Overall, the utility industry is known for its stability and reduced volatility.
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