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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - November 01, 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.
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.
Hartford Global Real Asset R5 (HRLTX - Free Report) : This fund has an expense ratio of 0.95% and a management fee of 0.85%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. HRLTX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
AB Allocation Market Real Return Advisor (AMTYX - Free Report) : 1.01% expense ratio, 0.75% management fee. AMTYX 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. This fund has an annual returns of -2.43% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Hotchkis and Wiley Mid-Cap Value A (HWMAX - Free Report) - 1.25% expense ratio, 0.75% management fee. HWMAX is a Mid Cap Value mutual funds that aims to target medium-sized companies that possess strong value and income opportunities for investors. HWMAX has generated annual returns of -1.23% 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.
Columbia Global Equity Fund Z (CGEZX - Free Report) is a fund that has an expense ratio of 1.08%, and a management fee of 0.87%. CGEZX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With yearly returns of 10.51% over the last five years, this fund clearly wins.
Principal Capital Appreciation R2 has an expense ratio of 1.24% and management fee of 0.47%. PCANX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. With annual returns of 10.36% over the last five years, this is a well-diversified fund with a long track record of success.
BlackRock Advantage Large Cap Growth R (BMCRX - Free Report) has an expense ratio of 1.12% and management fee of 0.57%. BMCRX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With yearly returns of 10.27% 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:
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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - November 01, 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.
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.
Hartford Global Real Asset R5 (HRLTX - Free Report) : This fund has an expense ratio of 0.95% and a management fee of 0.85%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. HRLTX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
AB Allocation Market Real Return Advisor (AMTYX - Free Report) : 1.01% expense ratio, 0.75% management fee. AMTYX 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. This fund has an annual returns of -2.43% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Hotchkis and Wiley Mid-Cap Value A (HWMAX - Free Report) - 1.25% expense ratio, 0.75% management fee. HWMAX is a Mid Cap Value mutual funds that aims to target medium-sized companies that possess strong value and income opportunities for investors. HWMAX has generated annual returns of -1.23% 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.
Columbia Global Equity Fund Z (CGEZX - Free Report) is a fund that has an expense ratio of 1.08%, and a management fee of 0.87%. CGEZX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With yearly returns of 10.51% over the last five years, this fund clearly wins.
Principal Capital Appreciation R2 has an expense ratio of 1.24% and management fee of 0.47%. PCANX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. With annual returns of 10.36% over the last five years, this is a well-diversified fund with a long track record of success.
BlackRock Advantage Large Cap Growth R (BMCRX - Free Report) has an expense ratio of 1.12% and management fee of 0.57%. BMCRX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With yearly returns of 10.27% 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