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Are You Invested In These 3 Mutual Fund Misfires? - November 21, 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.
American Funds ST Bond Fund of America 529E (CEAMX - Free Report) : Expense ratio: 0.96%. Management fee: 0.28%. After expenses, the 5 year return is 0.77%, meaning your fees are far higher than the fund's returns.
Principal International Emerging Markets R4 (PESSX - Free Report) : 1.54% expense ratio, 1.19%. PESSX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has yearly returns of 0.88% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Midas Fund (MIDSX - Free Report) - 4.47% expense ratio, 1% management fee. This fund has yielded yearly returns of 1.1% in the course of the last five years. Too bad!
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.
Fidelity OTC Portfolio (FOCPX - Free Report) : Expense ratio: 0.88%. Management fee: 0.73%. FOCPX is a Mid Cap Blend mutual fund that typically features a portfolio filled with stocks of various sizes and styles; it allows for a diversification strategy focusing on companies with market caps between $2 billion and $10 billion. This fund has achieved five-year annual returns of an astounding 14.8%.
Nicholas Limited Edition (NCLEX - Free Report) : Expense ratio: 0.87%. Management fee: 0.75%. NCLEX is a Small Cap Blend mutual fund that usually targets companies with a market capitalization of less than $2 billion. NCLEX has managed to produce a robust 11.13% over the last five years.
Nuveen Winslow Large-Cap Growth R6 (NWCFX - Free Report) has an expense ratio of 0.57% and management fee of 0.69%. NWCFX 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 yearly returns of 12.82% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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.
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Are You Invested In These 3 Mutual Fund Misfires? - November 21, 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 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.
American Funds ST Bond Fund of America 529E (CEAMX - Free Report) : Expense ratio: 0.96%. Management fee: 0.28%. After expenses, the 5 year return is 0.77%, meaning your fees are far higher than the fund's returns.
Principal International Emerging Markets R4 (PESSX - Free Report) : 1.54% expense ratio, 1.19%. PESSX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has yearly returns of 0.88% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Midas Fund (MIDSX - Free Report) - 4.47% expense ratio, 1% management fee. This fund has yielded yearly returns of 1.1% in the course of the last five years. Too bad!
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.
Fidelity OTC Portfolio (FOCPX - Free Report) : Expense ratio: 0.88%. Management fee: 0.73%. FOCPX is a Mid Cap Blend mutual fund that typically features a portfolio filled with stocks of various sizes and styles; it allows for a diversification strategy focusing on companies with market caps between $2 billion and $10 billion. This fund has achieved five-year annual returns of an astounding 14.8%.
Nicholas Limited Edition (NCLEX - Free Report) : Expense ratio: 0.87%. Management fee: 0.75%. NCLEX is a Small Cap Blend mutual fund that usually targets companies with a market capitalization of less than $2 billion. NCLEX has managed to produce a robust 11.13% over the last five years.
Nuveen Winslow Large-Cap Growth R6 (NWCFX - Free Report) has an expense ratio of 0.57% and management fee of 0.69%. NWCFX 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 yearly returns of 12.82% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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.