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Mutual Fund Misfires of the Market - November 14, 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 plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
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.
Invesco Gold & Precious Metals Investor : 1.47% expense ratio and 0.75% management fee. FGLDX is classified as a Sector - Precious Metal fund, and these mutual funds invest in stocks with a focus on the mining and production of precious metals like gold, silver, platinum, and palladium. With a five year after-expenses return of 0.32%, you're mostly paying more in fees than returns.
Permanent Portfolio Treasury (PRTBX - Free Report) : 0.66% expense ratio, 1.19% management fee. PRTBX is a Government Bond - Short fund, and these funds hold securities issued by the U.S. federal government. This category focuses on the short end of the curve, and are seen as extremely low risk securities from a default perspective. This fund has an annual returns of 0.33% over the last five years. Another fund guilty of having investors pay more in fees than returns.
SA International Value Fund (SAHMX - Free Report) - 1.12% expense ratio, 0.65% management fee. This fund has yielded yearly returns of 0.67% in the course of the last five years. Too bad!
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.
Nationwide Growth R6 (MUIGX - Free Report) : 0.65% expense ratio and 0.6% management fee. MUIGX 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. With an annual return of 12.2% over the last five years, this fund is a winner.
Oppenheimer Discovery A (OPOCX - Free Report) is a stand out fund. OPOCX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With five-year annualized performance of 11.08% and expense ratio of 1.07%, this diversified fund is an attractive buy with a strong history of performance.
Neuberger Berman Mid Cap Growth Investor (NMANX - Free Report) has an expense ratio of 0.9% and management fee of 0.76%. NMANX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With annual returns of 10.91% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.
Do You Know the Top 9 Retirement Investing Mistakes?
Whether you're planning to retire early or not, don't let investing mistakes derail your plans.
Image: Bigstock
Mutual Fund Misfires of the Market - November 14, 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.
High fees plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
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.
Invesco Gold & Precious Metals Investor : 1.47% expense ratio and 0.75% management fee. FGLDX is classified as a Sector - Precious Metal fund, and these mutual funds invest in stocks with a focus on the mining and production of precious metals like gold, silver, platinum, and palladium. With a five year after-expenses return of 0.32%, you're mostly paying more in fees than returns.
Permanent Portfolio Treasury (PRTBX - Free Report) : 0.66% expense ratio, 1.19% management fee. PRTBX is a Government Bond - Short fund, and these funds hold securities issued by the U.S. federal government. This category focuses on the short end of the curve, and are seen as extremely low risk securities from a default perspective. This fund has an annual returns of 0.33% over the last five years. Another fund guilty of having investors pay more in fees than returns.
SA International Value Fund (SAHMX - Free Report) - 1.12% expense ratio, 0.65% management fee. This fund has yielded yearly returns of 0.67% in the course of the last five years. Too bad!
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.
Nationwide Growth R6 (MUIGX - Free Report) : 0.65% expense ratio and 0.6% management fee. MUIGX 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. With an annual return of 12.2% over the last five years, this fund is a winner.
Oppenheimer Discovery A (OPOCX - Free Report) is a stand out fund. OPOCX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With five-year annualized performance of 11.08% and expense ratio of 1.07%, this diversified fund is an attractive buy with a strong history of performance.
Neuberger Berman Mid Cap Growth Investor (NMANX - Free Report) has an expense ratio of 0.9% and management fee of 0.76%. NMANX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With annual returns of 10.91% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.
Do You Know the Top 9 Retirement Investing Mistakes?
Whether you're planning to retire early or not, don't let investing mistakes derail your plans.
If you have $500,000 or more to invest and want to learn more, click the link to download our free report, 9 Retirement Mistakes that will Ruin Your Retirement.