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Mutual Fund Misfires of the Market - December 05, 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.
Permanent Portfolio Treasury (PRTBX - Free Report) : Expense ratio: 0.66%. Management fee: 1.19%. After expenses, the 5 year return is 0.33%, meaning your fees are far higher than the fund's returns.
Clearbridge International Value IS (LSIUX - Free Report) : 0.8% expense ratio, 0.75%. LSIUX 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 yearly returns of -1.33% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Invesco Gold & Precious Metals Investor : This fund has an expense ratio of 1.47% and management fee of 0.75%. 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 an annual average return of 0.32% 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
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Oppenheimer Discovery A (OPOCX - Free Report) : 1.07% expense ratio and 0.63% management fee. OPOCX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With an annual return of 11.08% over the last five years, this fund is a winner.
Fidelity Series Opportunistic Insights (FVWSX - Free Report) has an expense ratio of 0.03% and management fee of 0%. FVWSX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. With annual returns of 11.78% over the last five years, this is a well-diversified fund with a long track record of success.
Harbor Large Cap Value Institutional (HAVLX - Free Report) has an expense ratio of 0.68% and management fee of 0.6%. HAVLX is a Large Cap Value mutual fund, which invests in stocks with a market cap of $10 billion of more, but whose share prices do not reflect their intrinsic value. With annual returns of 11.17% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
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.
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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Mutual Fund Misfires of the Market - December 05, 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.
Permanent Portfolio Treasury (PRTBX - Free Report) : Expense ratio: 0.66%. Management fee: 1.19%. After expenses, the 5 year return is 0.33%, meaning your fees are far higher than the fund's returns.
Clearbridge International Value IS (LSIUX - Free Report) : 0.8% expense ratio, 0.75%. LSIUX 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 yearly returns of -1.33% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Invesco Gold & Precious Metals Investor : This fund has an expense ratio of 1.47% and management fee of 0.75%. 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 an annual average return of 0.32% 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
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Oppenheimer Discovery A (OPOCX - Free Report) : 1.07% expense ratio and 0.63% management fee. OPOCX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With an annual return of 11.08% over the last five years, this fund is a winner.
Fidelity Series Opportunistic Insights (FVWSX - Free Report) has an expense ratio of 0.03% and management fee of 0%. FVWSX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. With annual returns of 11.78% over the last five years, this is a well-diversified fund with a long track record of success.
Harbor Large Cap Value Institutional (HAVLX - Free Report) has an expense ratio of 0.68% and management fee of 0.6%. HAVLX is a Large Cap Value mutual fund, which invests in stocks with a market cap of $10 billion of more, but whose share prices do not reflect their intrinsic value. With annual returns of 11.17% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
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.
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.