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Mutual Fund Misfires of the Market - October 29, 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.
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.
Oppenheimer SteelPath MLP Alph Plus I (MLPNX - Free Report) : 2.55% expense ratio and 1.25% management fee. MLPNX 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-costs return of -11.2%, you're for the most part paying more in charges than returns.
Legg Mason BW Absolute Return Opportunity I (LROIX - Free Report) : 0.85% expense ratio, 0.64%. LROIX is an Investment Grade Bond - Intermediate fund, which targets bonds that mature in more than three years but less than 15 years, and are a middle of the curve option for investors. This fund has yearly returns of 0.71% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
John Hancock2 Emerging Markets A (JEVAX - Free Report) - 1.47% expense ratio, 0.92% management fee. JEVAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. JEVAX has generated annual returns of -0.01% 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.
Putnam Growth Opportunities R5 (PGODX - Free Report) : 0.36% expense ratio and 0.45% management fee. PGODX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. With an annual return of 13.47% over the last five years, this fund is a winner.
T. Rowe Price Cap Opportunity (PRCOX - Free Report) is a stand out fund. PRCOX 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 five-year annualized performance of 11.19% and expense ratio of 0.66%, this diversified fund is an attractive buy with a strong history of performance.
Brown Advisory Flexible Equity Institutional (BAFFX - Free Report) has an expense ratio of 0.57% and management fee of 0.44%. BAFFX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. With annual returns of 10.56% over the last five years, this fund is a well-diversified fund with a long track record of success.
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
Mutual Fund Misfires of the Market - October 29, 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.
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.
Oppenheimer SteelPath MLP Alph Plus I (MLPNX - Free Report) : 2.55% expense ratio and 1.25% management fee. MLPNX 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-costs return of -11.2%, you're for the most part paying more in charges than returns.
Legg Mason BW Absolute Return Opportunity I (LROIX - Free Report) : 0.85% expense ratio, 0.64%. LROIX is an Investment Grade Bond - Intermediate fund, which targets bonds that mature in more than three years but less than 15 years, and are a middle of the curve option for investors. This fund has yearly returns of 0.71% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
John Hancock2 Emerging Markets A (JEVAX - Free Report) - 1.47% expense ratio, 0.92% management fee. JEVAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. JEVAX has generated annual returns of -0.01% 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.
Putnam Growth Opportunities R5 (PGODX - Free Report) : 0.36% expense ratio and 0.45% management fee. PGODX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. With an annual return of 13.47% over the last five years, this fund is a winner.
T. Rowe Price Cap Opportunity (PRCOX - Free Report) is a stand out fund. PRCOX 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 five-year annualized performance of 11.19% and expense ratio of 0.66%, this diversified fund is an attractive buy with a strong history of performance.
Brown Advisory Flexible Equity Institutional (BAFFX - Free Report) has an expense ratio of 0.57% and management fee of 0.44%. BAFFX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. With annual returns of 10.56% over the last five years, this fund is a well-diversified fund with a long track record of success.
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