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Mutual Fund Misfires of the Market - November 07, 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.

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.

Wells Fargo International Equity A (WFEAX - Free Report) : 1.4% expense ratio and 0.85% management fee. WFEAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With a five year after-expenses return of 1.34%, you're mostly paying more in fees than returns.

JPMorgan Research Market Neutral L : 3.26% expense ratio, 0.8% management fee. JPMNX is a Market Neutral - Equity mutual fund. These portfolios usually hold 50% of their securities in a long position, as well as 50% in a short position. This fund has an annual returns of 0.64% over the last five years. Another fund guilty of having investors pay more in fees than returns.

Ivy Cundill Global Value R (IYCUX - Free Report) - 1.69% expense ratio, 1% management fee. This fund has yielded yearly returns of -0.98% in the course of the last five years. Too bad!

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.

AQR Large Cap Defensive Style N (AUENX - Free Report) : 0.65% expense ratio and 0.25% management fee. AUENX 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 13.62% over the last five years, this fund is a winner.

MFS Growth R6 (MFEKX - Free Report) : Expense ratio: 0.57%. Management fee: 0.55%. MFEKX is an All Cap Growth mutual fund investing in a wide variety of equities, no matter the size of the company and as long as the firm exhibits growth characteristics. MFEKX has managed to produce a robust 14.61% over the last five years.

Putnam Growth Opportunities C (POGCX - Free Report) is an attractive fund with a five-year annualized return of 12.64% and an expense ratio of just 0.87%. POGCX 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.

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

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