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3 Mutual Fund Misfires to Avoid - December 10, 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.
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.
Leader Total Return Investor (LCTRX - Free Report) : Expense ratio: 2.42%. Management fee: 0.75%. After expenses, the 5 year return is 0.92%, meaning your fees are far higher than the fund's returns.
American Century Multi Asset Real Return C . Expense ratio: 1.14%. Management fee: 0.75%. Over the last 5 years, this fund has generated annual returns of 0.78%.
Templeton Frontier Markets C : Expense ratio: 2.71%. Management fee: 1.4%. FFRMX 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. With annual returns of just -8.4%, 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.
MFS Mass Investors Growth Stock R2 (MIRGX - Free Report) : 0.98% expense ratio and 0.33% management fee. MIRGX 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 an annual return of 13.32% over the last five years, this fund is a winner.
Principal Capital Appreciation R1 (PCAMX - Free Report) has an expense ratio of 1.37% and management fee of 0.47%. PCAMX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. Thanks to yearly returns of 10.21% over the last five years, PCAMX is an effectively diversified fund with a long reputation of solidly positive performance.
Janus Henderson Enterprise T (JAENX - Free Report) : Expense ratio: 0.91%. Management fee: 0.64%. JAENX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. JAENX has produced a 14.7% over the last five years.
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.
Image: Bigstock
3 Mutual Fund Misfires to Avoid - December 10, 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.
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.
Leader Total Return Investor (LCTRX - Free Report) : Expense ratio: 2.42%. Management fee: 0.75%. After expenses, the 5 year return is 0.92%, meaning your fees are far higher than the fund's returns.
American Century Multi Asset Real Return C . Expense ratio: 1.14%. Management fee: 0.75%. Over the last 5 years, this fund has generated annual returns of 0.78%.
Templeton Frontier Markets C : Expense ratio: 2.71%. Management fee: 1.4%. FFRMX 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. With annual returns of just -8.4%, 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.
MFS Mass Investors Growth Stock R2 (MIRGX - Free Report) : 0.98% expense ratio and 0.33% management fee. MIRGX 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 an annual return of 13.32% over the last five years, this fund is a winner.
Principal Capital Appreciation R1 (PCAMX - Free Report) has an expense ratio of 1.37% and management fee of 0.47%. PCAMX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. Thanks to yearly returns of 10.21% over the last five years, PCAMX is an effectively diversified fund with a long reputation of solidly positive performance.
Janus Henderson Enterprise T (JAENX - Free Report) : Expense ratio: 0.91%. Management fee: 0.64%. JAENX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. JAENX has produced a 14.7% over the last five years.
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.