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Are You Invested In These 3 Mutual Fund Misfires? - October 17, 2019
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If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your advisor.
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.
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.
Rydex S&P Small Cap 600 Pure Value H (RYAZX - Free Report) : This fund has an expense ratio of 1.62% and a management fee of 0.75%. 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. RYAZX is a Small Cap Value mutual fund, investing in small companies with stock market valuation less than $2 billion. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
BNY Mellon Emerging Markets Fund Investor (MIEGX - Free Report) : 1.64% expense ratio, 1.15% management fee. MIEGX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. This fund has an annual returns of 1.17% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Templeton Global Balanced Fund C1 (TCINX - Free Report) - 1.6% expense ratio, 0.73% management fee. This fund has yielded yearly returns of 0.64% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
VY T. Rowe Price Diversified Mid Cap Growth Service Class (IAXSX - Free Report) is a fund that has an expense ratio of 1.03%, and a management fee of 0.74%. IAXSX is a Mid Cap Blend mutual fund, and usually features a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on mid cap companies. With yearly returns of 12.11% over the last five years, this fund clearly wins.
Harbor Mid Cap Growth Investor (HIMGX - Free Report) has an expense ratio of 1.26% and management fee of 0.75%. HIMGX 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 annual returns of 11.2% over the last five years, this is a well-diversified fund with a long track record of success.
TCM Small Cap Growth Fund (TCMSX - Free Report) is an attractive fund with a five-year annualized return of 12.42% and an expense ratio of just 0.94%. TCMSX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets.
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:
Image: Bigstock
Are You Invested In These 3 Mutual Fund Misfires? - October 17, 2019
If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your advisor.
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.
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.
Rydex S&P Small Cap 600 Pure Value H (RYAZX - Free Report) : This fund has an expense ratio of 1.62% and a management fee of 0.75%. 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. RYAZX is a Small Cap Value mutual fund, investing in small companies with stock market valuation less than $2 billion. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
BNY Mellon Emerging Markets Fund Investor (MIEGX - Free Report) : 1.64% expense ratio, 1.15% management fee. MIEGX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. This fund has an annual returns of 1.17% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Templeton Global Balanced Fund C1 (TCINX - Free Report) - 1.6% expense ratio, 0.73% management fee. This fund has yielded yearly returns of 0.64% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
VY T. Rowe Price Diversified Mid Cap Growth Service Class (IAXSX - Free Report) is a fund that has an expense ratio of 1.03%, and a management fee of 0.74%. IAXSX is a Mid Cap Blend mutual fund, and usually features a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on mid cap companies. With yearly returns of 12.11% over the last five years, this fund clearly wins.
Harbor Mid Cap Growth Investor (HIMGX - Free Report) has an expense ratio of 1.26% and management fee of 0.75%. HIMGX 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 annual returns of 11.2% over the last five years, this is a well-diversified fund with a long track record of success.
TCM Small Cap Growth Fund (TCMSX - Free Report) is an attractive fund with a five-year annualized return of 12.42% and an expense ratio of just 0.94%. TCMSX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets.
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