If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your 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.
Below, you'll read about some of the funds included in our current list of "Mutual Fund Misfires of the Market." And if by chance you're invested in any of these misfires, we'll help and review some of our highest Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
PIMCO Rae Low Volatility PLUS EMG I (PLVLX): 1% expense ratio and 1.15% management fee. PLVLX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With a five year after-costs return of -0.34%, you're for the most part paying more in charges than returns.
Iron Horse Fund I (IRHIX). Expense ratio: 1.7%. Management fee: 1.15%. Over the last 5 years, this fund has generated annual returns of 1.32%.
Fidelity Advisor Event Driven Opportunity M : Expense ratio: 1.78%. Management fee: 0.8%. FJPDX is a Small Cap Blend mutual fund, allowing investors a way to diversify their funds among various types of small-cap stocks. With annual returns of just 1.54%, 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.
PNC Multi-Factor Large Cap Growth I (PEWIX): Expense ratio: 0.65%. Management fee: 0.55%. PEWIX 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. This fund has achieved five-year annual returns of an astounding 11.37%.
Fidelity Select Electronics (FSELX): Expense ratio: 0.72%. Management fee: 0.54%. FSELX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. FSELX has managed to produce a robust 18.12% over the last five years.
Victory RS Global Growth R (RGGKX) is an attractive fund with a five-year annualized return of 13.35% and an expense ratio of just 1.1%. RGGKX 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.
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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