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.
Saratoga Investment Quality Bond I (SIBPX - Free Report) : Expense ratio: 1.56%. Management fee: 0.55%. After expenses, the 5 year return is 0.77%, meaning your fees are far higher than the fund's returns.
Fidelity Advisor Strategy Real Return A (FSRAX - Free Report) : FSRAX is part of the Investment Grade Bond - Intermediate fund group. These mutual funds focus on the middle part of the curve, generally with bonds that usually mature in more than three years but less than 15 years. FSRAX offers an expense ratio of 1.08% and annual returns of 0.54% 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.
Virtus Equity Trend C (VAPCX - Free Report) - 2.3% expense ratio, 1% management fee. This fund has yielded yearly returns of 1% in the course of the last five years. Too bad!
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.
MSIF Global Opportunity Portfolio A (MGGPX - Free Report) : Expense ratio: 1.23%. Management fee: 0.74%. MGGPX 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. This fund has achieved five-year annual returns of an astounding 14.08%.
Dreyfus/Boston Small/Mid-Cap Growth A (DBMAX - Free Report) has an expense ratio of 0.98% and management fee of 0.6%. DBMAX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities. Thanks to yearly returns of 10.06% over the last five years, DBMAX is an effectively diversified fund with a long reputation of solidly positive performance.
MassMutual Select Mid Cap Growth I (MEFZX - Free Report) has an expense ratio of 0.71% and management fee of 0.69%. MEFZX 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 11.09% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
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