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3 Mutual Fund Misfires to Avoid - December 05, 2019

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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.

The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.

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.

Janus Henderson Emerging Markets C (HEMCX): This fund has an expense ratio of 2.16% and a management fee of 1%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. HEMCX is a Non US - Equity fund. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.

Hartford Global Real Asset R4 (HRLSX): 1.2% expense ratio, 0.85%. HRLSX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. This fund has yearly returns of -1.82% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.

Wells Fargo Absolute Return C (WARCX - Free Report) - 2.28% expense ratio, 0.72% management fee. This fund has yielded yearly returns of 0.7% 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.

AQR Large Cap Defensive Style R6 (QUERX): 0.3% expense ratio and 0.25% management fee. QUERX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. With an annual return of 14.03% over the last five years, this fund is a winner.

Brown Advisory Growth Equity Institutional (BAFGX) has an expense ratio of 0.7% and management fee of 0.59%. BAFGX 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. Thanks to yearly returns of 14.14% over the last five years, BAFGX is an effectively diversified fund with a long reputation of solidly positive performance.

Victory Sycamore Established Value R6 (VEVRX): Expense ratio: 0.58%. Management fee: 0.45%. VEVRX, an All Cap Value option, is a type of mutual fund that buys stakes in companies in all three valuation categories. VEVRX has produced a 10.57% over the last five years.

Bottom Line

Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.

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