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Mutual Fund Misfires of the Market - November 05, 2019
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You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
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.
SA Emerging Markets Value Fund (SAEMX - Free Report) : Expense ratio: 1.35%. Management fee: 0.92%. After expenses, the 5 year return is -0.27%, meaning your fees are far higher than the fund's returns.
Lord Abbett Inflation Focused C (LIFCX - Free Report) : LIFCX is a Government - Bonds fund, which holds securities issued by the U.S. federal government. This category stretches across the curve, meaning the yields and interest rate sensitivity will vary. LIFCX offers an expense ratio of 1.33% and annual returns of -0.78% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
Hodges Fund (HDPMX - Free Report) : This fund has an expense ratio of 1.18% and management fee of 0.85%. HDPMX is a Mid Cap Blend mutual fund, and usually features a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on mid cap companies. With an annual average return of 0.85% 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
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.
Diamond Hill Large Cap Fund I (DHLRX - Free Report) : Expense ratio: 0.67%. Management fee: 0.5%. DHLRX 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. This fund has achieved five-year annual returns of an astounding 10.92%.
Harbor Large Cap Value Admiral (HRLVX - Free Report) : Expense ratio: 0.93%. Management fee: 0.6%. HRLVX is a part of the Large Cap Value category, and invests in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. HRLVX has managed to produce a robust 10.88% over the last five years.
T. Rowe Price Institutional Small-Cap Stock (TRSSX - Free Report) is an attractive fund with a five-year annualized return of 11.99% and an expense ratio of just 0.66%. TRSSX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities.
Bottom Line
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
If you have concerns or any doubts about your investment advisor, read our just-released report:
Image: Bigstock
Mutual Fund Misfires of the Market - November 05, 2019
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
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.
SA Emerging Markets Value Fund (SAEMX - Free Report) : Expense ratio: 1.35%. Management fee: 0.92%. After expenses, the 5 year return is -0.27%, meaning your fees are far higher than the fund's returns.
Lord Abbett Inflation Focused C (LIFCX - Free Report) : LIFCX is a Government - Bonds fund, which holds securities issued by the U.S. federal government. This category stretches across the curve, meaning the yields and interest rate sensitivity will vary. LIFCX offers an expense ratio of 1.33% and annual returns of -0.78% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
Hodges Fund (HDPMX - Free Report) : This fund has an expense ratio of 1.18% and management fee of 0.85%. HDPMX is a Mid Cap Blend mutual fund, and usually features a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on mid cap companies. With an annual average return of 0.85% 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
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.
Diamond Hill Large Cap Fund I (DHLRX - Free Report) : Expense ratio: 0.67%. Management fee: 0.5%. DHLRX 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. This fund has achieved five-year annual returns of an astounding 10.92%.
Harbor Large Cap Value Admiral (HRLVX - Free Report) : Expense ratio: 0.93%. Management fee: 0.6%. HRLVX is a part of the Large Cap Value category, and invests in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. HRLVX has managed to produce a robust 10.88% over the last five years.
T. Rowe Price Institutional Small-Cap Stock (TRSSX - Free Report) is an attractive fund with a five-year annualized return of 11.99% and an expense ratio of just 0.66%. TRSSX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities.
Bottom Line
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
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