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Mutual Fund Misfires of the Market - November 08, 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.

How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each 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.

JPMorgan Research Market Neutral A (JMNAX - Free Report) : Expense ratio: 3.66%. Management fee: 0.8%. After expenses, the 5 year return is -0.79%, meaning your fees are far higher than the fund's returns.

Invesco International Small Company A (IEGAX - Free Report) : 1.58% expense ratio, 0.93% management fee. IEGAX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. This fund has an annual returns of 0.45% over the last five years. Another fund guilty of having investors pay more in fees than returns.

Hartford Inflation Plus C (HIPCX - Free Report) : Expense ratio: 1.6%. Management fee: 0.5%. HIPCX 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. With annual returns of just 0.88%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.

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.

MFS Mid-Cap Growth Fund 529A (EAMCX - Free Report) is a fund that has an expense ratio of 1.14%, and a management fee of 0.71%. EAMCX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With yearly returns of 12.26% over the last five years, this fund clearly wins.

Principal Real Estate Security R3 (PRERX - Free Report) : Expense ratio: 1.38%. Management fee: 0.81%. PRERX is categorized as a Sector - Real Estate mutual fund, which typically invests in various real estate investment trusts (REIT) due to their taxation rules. PRERX has managed to produce a robust 11.14% over the last five years.

Vanguard Tax-Managed Cap Appreciation Admiral (VTCLX - Free Report) is an attractive fund with a five-year annualized return of 10.83% and an expense ratio of just 0.09%. VTCLX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks.

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.

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