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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - October 15, 2019
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Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new advisor.
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.
Ivy Municipals Bond B : Expense ratio: 1.64%. Management fee: 0.51%. After expenses, the 5 year return is 1.28%, meaning your fees are far higher than the fund's returns.
Gabelli Focus Five Fund AAA (GWSVX - Free Report) : GWSVX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion. GWSVX offers an expense ratio of 1.71% and annual returns of -1.2% 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.
Hartford International Small Company C - 2.23% expense ratio, 0.9% management fee. This fund has yielded yearly returns of 0.44% 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.
BlackRock Advantage Large Cap Growth R (BMCRX - Free Report) is a fund that has an expense ratio of 1.12%, and a management fee of 0.57%. BMCRX 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 10.27% over the last five years, this fund clearly wins.
Principal Capital Appreciation R2 is a stand out fund. PCANX 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 five-year annualized performance of 10.36% and expense ratio of 1.24%, this diversified fund is an attractive buy with a strong history of performance.
Columbia Global Equity Fund Z (CGEZX - Free Report) has an expense ratio of 1.08% and management fee of 0.87%. CGEZX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With annual returns of 10.51% over the last five years, this fund is a well-diversified fund with a long track record of success.
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:
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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - October 15, 2019
Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new advisor.
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.
Ivy Municipals Bond B : Expense ratio: 1.64%. Management fee: 0.51%. After expenses, the 5 year return is 1.28%, meaning your fees are far higher than the fund's returns.
Gabelli Focus Five Fund AAA (GWSVX - Free Report) : GWSVX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion. GWSVX offers an expense ratio of 1.71% and annual returns of -1.2% 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.
Hartford International Small Company C - 2.23% expense ratio, 0.9% management fee. This fund has yielded yearly returns of 0.44% 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.
BlackRock Advantage Large Cap Growth R (BMCRX - Free Report) is a fund that has an expense ratio of 1.12%, and a management fee of 0.57%. BMCRX 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 10.27% over the last five years, this fund clearly wins.
Principal Capital Appreciation R2 is a stand out fund. PCANX 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 five-year annualized performance of 10.36% and expense ratio of 1.24%, this diversified fund is an attractive buy with a strong history of performance.
Columbia Global Equity Fund Z (CGEZX - Free Report) has an expense ratio of 1.08% and management fee of 0.87%. CGEZX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With annual returns of 10.51% over the last five years, this fund is a well-diversified fund with a long track record of success.
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