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3 Mutual Fund Misfires to Avoid - 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.
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.
AB International Value R (AIVRX - Free Report) : Expense ratio: 1.8%. Management fee: 0.75%. After expenses, the 5 year return is -0.13%, meaning your fees are far higher than the fund's returns.
Ivy Cundill Global Value R (IYCUX - Free Report) : IYCUX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. IYCUX offers an expense ratio of 1.69% and annual returns of -0.98% 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.
Frank Value Fund Investor (FRNKX - Free Report) : Expense ratio: 1.49%. Management fee: 0.99%. FRNKX 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 annual returns of just -0.85%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
MFS Mass Investors Growth Stock R5 (MIGNX - Free Report) is a fund that has an expense ratio of 0.38%, and a management fee of 0.33%. MIGNX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. With yearly returns of 14.01% over the last five years, this fund clearly wins.
Baron Global Advantage Fund Retail (BGAFX - Free Report) has an expense ratio of 1.15% and management fee of 0.85%. BGAFX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With annual returns of 12.8% over the last five years, this is a well-diversified fund with a long track record of success.
AQR Large Cap Defensive Style N (AUENX - Free Report) has an expense ratio of 0.65% and management fee of 0.25%. AUENX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. With annual returns of 13.62% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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 - 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.
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.
AB International Value R (AIVRX - Free Report) : Expense ratio: 1.8%. Management fee: 0.75%. After expenses, the 5 year return is -0.13%, meaning your fees are far higher than the fund's returns.
Ivy Cundill Global Value R (IYCUX - Free Report) : IYCUX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. IYCUX offers an expense ratio of 1.69% and annual returns of -0.98% 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.
Frank Value Fund Investor (FRNKX - Free Report) : Expense ratio: 1.49%. Management fee: 0.99%. FRNKX 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 annual returns of just -0.85%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
MFS Mass Investors Growth Stock R5 (MIGNX - Free Report) is a fund that has an expense ratio of 0.38%, and a management fee of 0.33%. MIGNX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. With yearly returns of 14.01% over the last five years, this fund clearly wins.
Baron Global Advantage Fund Retail (BGAFX - Free Report) has an expense ratio of 1.15% and management fee of 0.85%. BGAFX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With annual returns of 12.8% over the last five years, this is a well-diversified fund with a long track record of success.
AQR Large Cap Defensive Style N (AUENX - Free Report) has an expense ratio of 0.65% and management fee of 0.25%. AUENX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. With annual returns of 13.62% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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