If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess 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.
Intrepid Endurance Fund Institutional (ICMZX - Free Report) : Expense ratio: 1.15%. Management fee: 1%. After expenses, the 5 year return is 0.06%, meaning your fees are far higher than the fund's returns.
Janus Henderson Short Term Bond C (JSHCX - Free Report) . Expense ratio: 1.49%. Management fee: 1%. Over the last 5 years, this fund has generated annual returns of 0.61%.
AB Allocation Market Real Return C (ACMTX - Free Report) : This fund has an expense ratio of 2.01% and management fee of 0.75%. ACMTX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. With an annual average return of -3.4% 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.
JPMorgan Large Cap Growth R5 (JLGRX - Free Report) is a winner, with an expense ratio of just 0.53% and a five-year annualized return track record of 13.19%.
Neuberger Berman Mid Cap Growth R3 (NMGRX - Free Report) : Expense ratio: 1.35%. Management fee: 0.76%. NMGRX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. NMGRX has managed to produce a robust 10.44% over the last five years.
Janus Henderson US Managed Volatilty T (JRSTX - Free Report) has an expense ratio of 0.8% and management fee of 0.5%. JRSTX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. With annual returns of 10.16% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.
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