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3 Mutual Fund Misfires to Avoid - 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.
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.
Dreyfus GNMA C (GPNCX - Free Report) : 1.92% expense ratio and 0.5% management fee. GPNCX is a Government Mortgage - Intermediate mutual fund; these funds focus on the mortgage-backed securities (MBS) market and specifially, securities that have at least three years, but less than 10, to maturity. With a five year after-costs return of 1.11%, you're for the most part paying more in charges than returns.
Delaware Limited Term Diversified Income C (DTICX - Free Report) : 1.39% expense ratio, 0.5% management fee. DTICX 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. This fund has an annual returns of 0.85% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Natixis Oakmark International Fund C (NOICX - Free Report) : Expense ratio: 2.06%. Management fee: 0.85%. NOICX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With annual returns of just 1.56%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
AQR Large Cap Momentum Style R6 (QMORX - Free Report) : 0.3% expense ratio and 0.25% management fee. QMORX 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 an annual return of 10.33% over the last five years, this fund is a winner.
T. Rowe Price Small Cap Stock Adviser (PASSX - Free Report) has an expense ratio of 1.14% and management fee of 0.74%. PASSX is a Small Cap Blend mutual fund, allowing investors a way to diversify their funds among various types of small-cap stocks. Thanks to yearly returns of 11.38% over the last five years, PASSX is an effectively diversified fund with a long reputation of solidly positive performance.
Harbor Mid Cap Growth Institutional (HAMGX - Free Report) has an expense ratio of 0.89% and management fee of 0.75%. HAMGX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With yearly returns of 11.62% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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
3 Mutual Fund Misfires to Avoid - 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.
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.
Dreyfus GNMA C (GPNCX - Free Report) : 1.92% expense ratio and 0.5% management fee. GPNCX is a Government Mortgage - Intermediate mutual fund; these funds focus on the mortgage-backed securities (MBS) market and specifially, securities that have at least three years, but less than 10, to maturity. With a five year after-costs return of 1.11%, you're for the most part paying more in charges than returns.
Delaware Limited Term Diversified Income C (DTICX - Free Report) : 1.39% expense ratio, 0.5% management fee. DTICX 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. This fund has an annual returns of 0.85% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Natixis Oakmark International Fund C (NOICX - Free Report) : Expense ratio: 2.06%. Management fee: 0.85%. NOICX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With annual returns of just 1.56%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
AQR Large Cap Momentum Style R6 (QMORX - Free Report) : 0.3% expense ratio and 0.25% management fee. QMORX 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 an annual return of 10.33% over the last five years, this fund is a winner.
T. Rowe Price Small Cap Stock Adviser (PASSX - Free Report) has an expense ratio of 1.14% and management fee of 0.74%. PASSX is a Small Cap Blend mutual fund, allowing investors a way to diversify their funds among various types of small-cap stocks. Thanks to yearly returns of 11.38% over the last five years, PASSX is an effectively diversified fund with a long reputation of solidly positive performance.
Harbor Mid Cap Growth Institutional (HAMGX - Free Report) has an expense ratio of 0.89% and management fee of 0.75%. HAMGX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With yearly returns of 11.62% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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