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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - 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.
Highland Long/Short Equity Z : 2.53% expense ratio and 2.25% management fee. HEOZX is a Long Short - Equity option. These funds' investment strategy consists of minimizing overall market exposure, while at the same time taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. With a five year after-expenses return of 2.08%, you're mostly paying more in fees than returns.
AB International Value K (AIVKX - Free Report) . Expense ratio: 1.49%. Management fee: 2.25%. Over the last 5 years, this fund has generated annual returns of 0.16%.
Franklin Real Return Adviser - 0.63% expense ratio, 0.63% management fee. FARRX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. FARRX has generated annual returns of 0.26% 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.
William Blair Mutual-Growth I (BGFIX - Free Report) is a winner, with an expense ratio of just 0.93% and a five-year annualized return track record of 12.38%.
PRIMECAP Odyssey Growth Fund (POGRX - Free Report) has an expense ratio of 0.64% and management fee of 0.55%. POGRX 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 annual returns of 11% over the last five years, this is a well-diversified fund with a long track record of success.
JPMorgan Small Cap Growth L (JISGX - Free Report) has an expense ratio of 0.84% and management fee of 0.65%. JISGX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With yearly returns of 13.97% 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:
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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - 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.
Highland Long/Short Equity Z : 2.53% expense ratio and 2.25% management fee. HEOZX is a Long Short - Equity option. These funds' investment strategy consists of minimizing overall market exposure, while at the same time taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. With a five year after-expenses return of 2.08%, you're mostly paying more in fees than returns.
AB International Value K (AIVKX - Free Report) . Expense ratio: 1.49%. Management fee: 2.25%. Over the last 5 years, this fund has generated annual returns of 0.16%.
Franklin Real Return Adviser - 0.63% expense ratio, 0.63% management fee. FARRX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. FARRX has generated annual returns of 0.26% 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.
William Blair Mutual-Growth I (BGFIX - Free Report) is a winner, with an expense ratio of just 0.93% and a five-year annualized return track record of 12.38%.
PRIMECAP Odyssey Growth Fund (POGRX - Free Report) has an expense ratio of 0.64% and management fee of 0.55%. POGRX 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 annual returns of 11% over the last five years, this is a well-diversified fund with a long track record of success.
JPMorgan Small Cap Growth L (JISGX - Free Report) has an expense ratio of 0.84% and management fee of 0.65%. JISGX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With yearly returns of 13.97% 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