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Are You Invested In These 3 Mutual Fund Misfires? - October 23, 2019
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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.
Ivy Natural Resources N (INRSX - Free Report) : 0.93% expense ratio and 0.85% management fee. INRSX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With a five year after-costs return of -7.97%, you're for the most part paying more in charges than returns.
Aberdeen International Equity Institutional Service Class (GIGSX - Free Report) : 1.19% expense ratio, 0.8% management fee. GIGSX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has an annual returns of 0.33% over the last five years. Another fund guilty of having investors pay more in fees than returns.
AQR Multi Strategy Alternative R6 - 1.87% expense ratio, 1.75% management fee. QSARX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. QSARX has generated annual returns of -1.04% over the last five years. Ouch!
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.
Vanguard Tax-Managed Cap Appreciation Admiral (VTCLX - Free Report) is a winner, with an expense ratio of just 0.09% and a five-year annualized return track record of 10.83%.
MFS Mid-Cap Growth Fund 529A is a stand out fund. EAMCX is a Mid Cap Growth mutual fund. Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers. With five-year annualized performance of 12.26% and expense ratio of 1.14%, this diversified fund is an attractive buy with a strong history of performance.
Principal Real Estate Security R3 (PRERX - Free Report) has an expense ratio of 1.38% and management fee of 0.81%. PRERX is categorized as a Sector - Real Estate mutual fund, which typically invests in various real estate investment trusts (REIT) due to their taxation rules. With yearly returns of 11.14% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
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:
Image: Bigstock
Are You Invested In These 3 Mutual Fund Misfires? - October 23, 2019
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.
Ivy Natural Resources N (INRSX - Free Report) : 0.93% expense ratio and 0.85% management fee. INRSX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With a five year after-costs return of -7.97%, you're for the most part paying more in charges than returns.
Aberdeen International Equity Institutional Service Class (GIGSX - Free Report) : 1.19% expense ratio, 0.8% management fee. GIGSX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has an annual returns of 0.33% over the last five years. Another fund guilty of having investors pay more in fees than returns.
AQR Multi Strategy Alternative R6 - 1.87% expense ratio, 1.75% management fee. QSARX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. QSARX has generated annual returns of -1.04% over the last five years. Ouch!
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.
Vanguard Tax-Managed Cap Appreciation Admiral (VTCLX - Free Report) is a winner, with an expense ratio of just 0.09% and a five-year annualized return track record of 10.83%.
MFS Mid-Cap Growth Fund 529A is a stand out fund. EAMCX is a Mid Cap Growth mutual fund. Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers. With five-year annualized performance of 12.26% and expense ratio of 1.14%, this diversified fund is an attractive buy with a strong history of performance.
Principal Real Estate Security R3 (PRERX - Free Report) has an expense ratio of 1.38% and management fee of 0.81%. PRERX is categorized as a Sector - Real Estate mutual fund, which typically invests in various real estate investment trusts (REIT) due to their taxation rules. With yearly returns of 11.14% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
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