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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - November 06, 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.
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.
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.
American Funds Short Term Bond Fund of America R2E (RAAEX - Free Report) : 1.2% expense ratio and 0.28% management fee. RAAEX is a Government Bond - Short fund option. These funds hold securities issued by the U.S. federal government in their portfolios, and focus on the short end of the curve, which results in lower yields. With a five year after-costs return of 0.74%, you're for the most part paying more in charges than returns.
Lord Abbett Inflation Focused R3 (LIFRX - Free Report) : 0.98% expense ratio, 0.3%. LIFRX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. This fund has yearly returns of -0.45% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Catalyst Hedged Futures Strategy A : Expense ratio: 2.33%. Management fee: 1.75%. HFXAX is a Long Short - Equity fund, and these funds aim to minimize exposure to the broader market, taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. With annual returns of just -5.16%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
Putnam Small Cap Growth R (PSGRX - Free Report) is a fund that has an expense ratio of 1.46%, and a management fee of 0.57%. PSGRX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With yearly returns of 11.06% over the last five years, this fund clearly wins.
Principal Large Cap Growth I R5 (PPUPX - Free Report) is a stand out fund. PPUPX 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 five-year annualized performance of 14.09% and expense ratio of 0.85%, this diversified fund is an attractive buy with a strong history of performance.
VY T. Rower Price Diversified Mid Cap Growth Advisor (IAXAX - Free Report) has an expense ratio of 1.28% and management fee of 0.74%. IAXAX is a Mid Cap Blend mutual fund. These funds usually seek a stock portfolio of various size and style, which allows for diversification when the focus is on companies with a market cap in the range of $2 billion to $10 billion. With annual returns of 11.81% 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:
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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - November 06, 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.
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.
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.
American Funds Short Term Bond Fund of America R2E (RAAEX - Free Report) : 1.2% expense ratio and 0.28% management fee. RAAEX is a Government Bond - Short fund option. These funds hold securities issued by the U.S. federal government in their portfolios, and focus on the short end of the curve, which results in lower yields. With a five year after-costs return of 0.74%, you're for the most part paying more in charges than returns.
Lord Abbett Inflation Focused R3 (LIFRX - Free Report) : 0.98% expense ratio, 0.3%. LIFRX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. This fund has yearly returns of -0.45% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Catalyst Hedged Futures Strategy A : Expense ratio: 2.33%. Management fee: 1.75%. HFXAX is a Long Short - Equity fund, and these funds aim to minimize exposure to the broader market, taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. With annual returns of just -5.16%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
Putnam Small Cap Growth R (PSGRX - Free Report) is a fund that has an expense ratio of 1.46%, and a management fee of 0.57%. PSGRX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With yearly returns of 11.06% over the last five years, this fund clearly wins.
Principal Large Cap Growth I R5 (PPUPX - Free Report) is a stand out fund. PPUPX 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 five-year annualized performance of 14.09% and expense ratio of 0.85%, this diversified fund is an attractive buy with a strong history of performance.
VY T. Rower Price Diversified Mid Cap Growth Advisor (IAXAX - Free Report) has an expense ratio of 1.28% and management fee of 0.74%. IAXAX is a Mid Cap Blend mutual fund. These funds usually seek a stock portfolio of various size and style, which allows for diversification when the focus is on companies with a market cap in the range of $2 billion to $10 billion. With annual returns of 11.81% 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