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Mutual Fund Misfires of the Market - 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.

Virtus Equity Trend A (VAPAX): Expense ratio: 1.56%. Management fee: 1%. After expenses, the 5 year return is 0.59%, meaning your fees are far higher than the fund's returns.

Snow Capital Small Cap Value C (SNWCX). Expense ratio: 2.25%. Management fee: 1%. Over the last 5 years, this fund has generated annual returns of -1.82%.

Harding Loevner Front Emerging Markets Investor (HLMOX - Free Report) : Expense ratio: 2%. Management fee: 1.35%. HLMOX 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 -4.12%, 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.

Nicholas Limited Edition (NCLEX): 0.87% expense ratio and 0.75% management fee. NCLEX is a Small Cap Blend mutual fund that usually targets companies with a market capitalization of less than $2 billion. With an annual return of 11.13% over the last five years, this fund is a winner.

MFS Mass Investors Growth Stock A (MIGFX) has an expense ratio of 0.71% and management fee of 0.33%. MIGFX 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 12.36% over the last five years, MIGFX is an effectively diversified fund with a long reputation of solidly positive performance.

Value Line Mid Cap Focused Fund (VLIFX): Expense ratio: 1.1%. Management fee: 0.63%. VLIFX is a Mid Cap Growth mutual fund. Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers. VLIFX has produced a 14.55% 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.

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