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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - October 16, 2019
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If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your 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.
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.
Federated Fund for US Government Security B : 1.71% expense ratio and 0.41% management fee. FUSBX is a Government Mortgage - Intermediate fund, focusing on the mortgage-backed securities (MBS) market and securities with at least three years to maturity but less than 10. With a five year after-costs return of 0.92%, you're for the most part paying more in charges than returns.
Victory RS Global Natural Resources A (RSNRX - Free Report) : RSNRX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. RSNRX offers an expense ratio of 1.48% and annual returns of -24.77% 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.
Catalyst Hedged Futures Strategy I - 2.08% expense ratio, 1.75% management fee. This fund has yielded yearly returns of -3.87% 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.
JPMorgan Large Cap Growth R6 (JLGMX - Free Report) is a winner, with an expense ratio of just 0.43% and a five-year annualized return track record of 14.47%.
Franklin Real Estate Security R6 (FSERX - Free Report) is a stand out fund. FSERX is categorized as a Sector - Real Estate mutual fund, which typically invests in various real estate investment trusts (REIT) due to their taxation rules. With five-year annualized performance of 10.15% and expense ratio of 0.58%, this diversified fund is an attractive buy with a strong history of performance.
MSIFT Mid Cap Growth Portfolio IS (MMCGX - Free Report) has an expense ratio of 0.64% and management fee of 0.5%. MMCGX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With yearly returns of 11.16% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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:
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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - October 16, 2019
If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your 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.
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.
Federated Fund for US Government Security B : 1.71% expense ratio and 0.41% management fee. FUSBX is a Government Mortgage - Intermediate fund, focusing on the mortgage-backed securities (MBS) market and securities with at least three years to maturity but less than 10. With a five year after-costs return of 0.92%, you're for the most part paying more in charges than returns.
Victory RS Global Natural Resources A (RSNRX - Free Report) : RSNRX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. RSNRX offers an expense ratio of 1.48% and annual returns of -24.77% 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.
Catalyst Hedged Futures Strategy I - 2.08% expense ratio, 1.75% management fee. This fund has yielded yearly returns of -3.87% 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.
JPMorgan Large Cap Growth R6 (JLGMX - Free Report) is a winner, with an expense ratio of just 0.43% and a five-year annualized return track record of 14.47%.
Franklin Real Estate Security R6 (FSERX - Free Report) is a stand out fund. FSERX is categorized as a Sector - Real Estate mutual fund, which typically invests in various real estate investment trusts (REIT) due to their taxation rules. With five-year annualized performance of 10.15% and expense ratio of 0.58%, this diversified fund is an attractive buy with a strong history of performance.
MSIFT Mid Cap Growth Portfolio IS (MMCGX - Free Report) has an expense ratio of 0.64% and management fee of 0.5%. MMCGX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With yearly returns of 11.16% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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