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Mutual Fund Misfires of the Market - October 28, 2019
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If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your advisor.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Hartford Global Real Asset R3 (HRLRX - Free Report) : Expense ratio: 1.5%. Management fee: 0.85%. After expenses, the 5 year return is -2.08%, meaning your fees are far higher than the fund's returns.
Janus Henderson Emerging Markets I (HEMIX - Free Report) : 1.15% expense ratio, 1% management fee. HEMIX 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 0.64% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Gator Focus Institutional - 1.49% expense ratio, 0.8% management fee. GFFIX is an All Cap Value mutual fund, which invests in small, medium, and large-cap companies, though they end up focusing on bigger firms due to percentage of assets. GFFIX has generated annual returns of 1.1% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
Neuberger Berman Mid Cap Growth R6 (NRMGX - Free Report) is a winner, with an expense ratio of just 0.62% and a five-year annualized return track record of 10.54%.
Fidelity Series Opportunistic Insights (FVWSX - Free Report) : Expense ratio: 0.03%. Management fee: 0%. FVWSX 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. FVWSX has managed to produce a robust 11.78% over the last five years.
Columbia Seligman Communications and Information R4 (SCIOX - Free Report) has an expense ratio of 0.99% and management fee of 0.87%. SCIOX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. With annual returns of 17.5% 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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Mutual Fund Misfires of the Market - October 28, 2019
If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your advisor.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Hartford Global Real Asset R3 (HRLRX - Free Report) : Expense ratio: 1.5%. Management fee: 0.85%. After expenses, the 5 year return is -2.08%, meaning your fees are far higher than the fund's returns.
Janus Henderson Emerging Markets I (HEMIX - Free Report) : 1.15% expense ratio, 1% management fee. HEMIX 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 0.64% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Gator Focus Institutional - 1.49% expense ratio, 0.8% management fee. GFFIX is an All Cap Value mutual fund, which invests in small, medium, and large-cap companies, though they end up focusing on bigger firms due to percentage of assets. GFFIX has generated annual returns of 1.1% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
Neuberger Berman Mid Cap Growth R6 (NRMGX - Free Report) is a winner, with an expense ratio of just 0.62% and a five-year annualized return track record of 10.54%.
Fidelity Series Opportunistic Insights (FVWSX - Free Report) : Expense ratio: 0.03%. Management fee: 0%. FVWSX 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. FVWSX has managed to produce a robust 11.78% over the last five years.
Columbia Seligman Communications and Information R4 (SCIOX - Free Report) has an expense ratio of 0.99% and management fee of 0.87%. SCIOX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. With annual returns of 17.5% 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