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Are You Invested In These 3 Mutual Fund Misfires? - December 11, 2019

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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 plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.

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.

PSI Market Neutral Fund A (FXMAX): 1.9% expense ratio and 1% management fee. FXMAX is a Long Short - Equity fund, and these funds aim to minimize exposure to the broader market, taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. With a five year after-costs return of -3.94%, you're for the most part paying more in charges than returns.

Hartford Global Real Asset A (HRLAX). Expense ratio: 1.25%. Management fee: 1%. Over the last 5 years, this fund has generated annual returns of -2.89%.

Timothy Plan Defensive Strategy A (TPDAX - Free Report) - 1.35% expense ratio, 0.6% management fee. TPDAX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. TPDAX has generated annual returns of 0.33% over the last five years. Ouch!

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.

Janus Henderson Research I (JRAIX) is a winner, with an expense ratio of just 0.62% and a five-year annualized return track record of 11.5%.

Columbia Global Equity Fund Z (CGEZX) has an expense ratio of 1.08% and management fee of 0.87%. CGEZX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. Thanks to yearly returns of 10.51% over the last five years, CGEZX is an effectively diversified fund with a long reputation of solidly positive performance.

Oppenheimer Discovery I (ODIIX): Expense ratio: 0.67%. Management fee: 0.63%. ODIIX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. ODIIX has produced a 11.48% over the last five years.

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.

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