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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - November 04, 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.
Virtus Equity Trend A : 1.56% expense ratio and 1% management fee. VAPAX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. With a five year after-expenses return of 0.59%, you're mostly paying more in fees than returns.
AB Allocation Market Real Return 1 (AMTOX - Free Report) : 1.09% expense ratio, 0.75% management fee. AMTOX 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. This fund has an annual returns of -2.52% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Templeton Global Balanced Fund C (FCGBX - Free Report) : This fund has an expense ratio of 1.95% and management fee of 0.73%. FCGBX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With an annual average return of 0.32% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
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.
BMO Low Volatility Equity I : 0.65% expense ratio and 0.5% management fee. MLVEX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. With an annual return of 10.13% over the last five years, this fund is a winner.
JPMorgan Large Cap Growth R6 (JLGMX - Free Report) has an expense ratio of 0.43% and management fee of 0.5%. JLGMX 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. Thanks to yearly returns of 14.47% over the last five years, JLGMX is an effectively diversified fund with a long reputation of solidly positive performance.
Janus Henderson Enterprise T (JAENX - Free Report) is an attractive fund with a five-year annualized return of 14.7% and an expense ratio of just 0.91%. JAENX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers.
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:
Image: Bigstock
Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - November 04, 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.
Virtus Equity Trend A : 1.56% expense ratio and 1% management fee. VAPAX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. With a five year after-expenses return of 0.59%, you're mostly paying more in fees than returns.
AB Allocation Market Real Return 1 (AMTOX - Free Report) : 1.09% expense ratio, 0.75% management fee. AMTOX 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. This fund has an annual returns of -2.52% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Templeton Global Balanced Fund C (FCGBX - Free Report) : This fund has an expense ratio of 1.95% and management fee of 0.73%. FCGBX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With an annual average return of 0.32% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
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.
BMO Low Volatility Equity I : 0.65% expense ratio and 0.5% management fee. MLVEX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. With an annual return of 10.13% over the last five years, this fund is a winner.
JPMorgan Large Cap Growth R6 (JLGMX - Free Report) has an expense ratio of 0.43% and management fee of 0.5%. JLGMX 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. Thanks to yearly returns of 14.47% over the last five years, JLGMX is an effectively diversified fund with a long reputation of solidly positive performance.
Janus Henderson Enterprise T (JAENX - Free Report) is an attractive fund with a five-year annualized return of 14.7% and an expense ratio of just 0.91%. JAENX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers.
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