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Are You Invested In These 3 Mutual Fund Misfires? - November 06, 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.

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.

Ivy Natural Resources Y (IGNYX - Free Report) : 1.33% expense ratio and 0.85% management fee. IGNYX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. With a five year after-costs return of -8.33%, you're for the most part paying more in charges than returns.

Forester Discovery Fund : 1.35% expense ratio, 1% management fee. INTLX 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. This fund has an annual returns of -1.48% over the last five years. Another fund guilty of having investors pay more in fees than returns.

Columbia Disciplined Small Core A : This fund has an expense ratio of 1.36% and management fee of 0.85%. LSMAX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion. With an annual average return of 0.66% 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.

VY T. Rowe Price Diversified Mid Cap Growth Service Class (IAXSX - Free Report) is a fund that has an expense ratio of 1.03%, and a management fee of 0.74%. IAXSX 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 yearly returns of 12.11% over the last five years, this fund clearly wins.

T. Rowe Price Diversified Mid Cap Growth (PRDMX - Free Report) : Expense ratio: 0.8%. Management fee: 0.64%. PRDMX is a Mid Cap Growth mutual fund. Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers. PRDMX has managed to produce a robust 12.47% over the last five years.

Nationwide Growth Fund A (NMFAX - Free Report) : Expense ratio: 0.93%. Management fee: 0.6%. NMFAX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. NMFAX has produced a 10.63% over the last five years.

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

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