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Avoid These 3 Mutual Fund Misfires - October 21, 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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each 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 Natural Resources R (IGNRX - Free Report) : 1.67% expense ratio and 0.85% management fee. IGNRX is classified as a Sector - Energy mutual fund. Throughout the massive global energy sector, these funds hold a wide range of quickly changing and vitally important industries. With a five year after-expenses return of -8.66%, you're mostly paying more in fees than returns.
AB Unconstrained Bond R . Expense ratio: 1.15%. Management fee: 0.85%. Over the last 5 years, this fund has generated annual returns of 0.22%.
Wells Fargo International Value C - 2.1% expense ratio, 0.83% management fee. WFVCX 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. WFVCX has generated annual returns of 0.41% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
MFS Growth R6 (MFEKX - Free Report) is a winner, with an expense ratio of just 0.57% and a five-year annualized return track record of 14.61%.
Fidelity Small Cap Growth (FCPGX - Free Report) has an expense ratio of 1.04% and management fee of 0.81%. FCPGX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. With annual returns of 14.27% over the last five years, this is a well-diversified fund with a long track record of success.
Baron Fifth Avenue Growth Retail (BFTHX - Free Report) has an expense ratio of 1% and management fee of 0.7%. BFTHX 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 yearly returns of 13.78% 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
Avoid These 3 Mutual Fund Misfires - October 21, 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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each 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 Natural Resources R (IGNRX - Free Report) : 1.67% expense ratio and 0.85% management fee. IGNRX is classified as a Sector - Energy mutual fund. Throughout the massive global energy sector, these funds hold a wide range of quickly changing and vitally important industries. With a five year after-expenses return of -8.66%, you're mostly paying more in fees than returns.
AB Unconstrained Bond R . Expense ratio: 1.15%. Management fee: 0.85%. Over the last 5 years, this fund has generated annual returns of 0.22%.
Wells Fargo International Value C - 2.1% expense ratio, 0.83% management fee. WFVCX 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. WFVCX has generated annual returns of 0.41% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
MFS Growth R6 (MFEKX - Free Report) is a winner, with an expense ratio of just 0.57% and a five-year annualized return track record of 14.61%.
Fidelity Small Cap Growth (FCPGX - Free Report) has an expense ratio of 1.04% and management fee of 0.81%. FCPGX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. With annual returns of 14.27% over the last five years, this is a well-diversified fund with a long track record of success.
Baron Fifth Avenue Growth Retail (BFTHX - Free Report) has an expense ratio of 1% and management fee of 0.7%. BFTHX 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 yearly returns of 13.78% 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