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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - December 02, 2019
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You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
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 I (JMNSX - Free Report) : 3.39% expense ratio and 0.8% management fee. JMNSX is a Market Neutral - Equity mutual fund. These funds attempt to maximize returns, and usually hold 50% of their securities in a long position and 50% in a short position. With a five year after-costs return of 0.48%, you're for the most part paying more in charges than returns.
Touchstone Ultra Short Duration Fixed Income Y (TSYYX - Free Report) : 0.44% expense ratio, 0.25%. TSYYX is part of the Government Bond - Short fund category. Often seen as risk-free assets, these funds hold securities issued by the U.S. federal government and they focus on the short end of the curve. This fund has yearly returns of -0.26% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
AB Allocation Market Real Return R (AMTRX - Free Report) : Expense ratio: 1.54%. Management fee: 0.75%. AMTRX 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 annual returns of just -2.95%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
Eagle Mid Cap Growth A (HAGAX - Free Report) is a fund that has an expense ratio of 1.05%, and a management fee of 0.52%. HAGAX 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 10.41% over the last five years, this fund clearly wins.
City Natural Rochdale US Core Equity & Income Service Class (CNRVX - Free Report) : Expense ratio: 0.78%. Management fee: 0.4%. CNRVX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. CNRVX has managed to produce a robust 11.55% over the last five years.
Lord Abbett Developing Growth I (LADYX - Free Report) has an expense ratio of 0.69% and management fee of 0.51%. LADYX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With yearly returns of 10.13% 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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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - December 02, 2019
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
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 I (JMNSX - Free Report) : 3.39% expense ratio and 0.8% management fee. JMNSX is a Market Neutral - Equity mutual fund. These funds attempt to maximize returns, and usually hold 50% of their securities in a long position and 50% in a short position. With a five year after-costs return of 0.48%, you're for the most part paying more in charges than returns.
Touchstone Ultra Short Duration Fixed Income Y (TSYYX - Free Report) : 0.44% expense ratio, 0.25%. TSYYX is part of the Government Bond - Short fund category. Often seen as risk-free assets, these funds hold securities issued by the U.S. federal government and they focus on the short end of the curve. This fund has yearly returns of -0.26% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
AB Allocation Market Real Return R (AMTRX - Free Report) : Expense ratio: 1.54%. Management fee: 0.75%. AMTRX 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 annual returns of just -2.95%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
Eagle Mid Cap Growth A (HAGAX - Free Report) is a fund that has an expense ratio of 1.05%, and a management fee of 0.52%. HAGAX 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 10.41% over the last five years, this fund clearly wins.
City Natural Rochdale US Core Equity & Income Service Class (CNRVX - Free Report) : Expense ratio: 0.78%. Management fee: 0.4%. CNRVX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. CNRVX has managed to produce a robust 11.55% over the last five years.
Lord Abbett Developing Growth I (LADYX - Free Report) has an expense ratio of 0.69% and management fee of 0.51%. LADYX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With yearly returns of 10.13% 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.