Back to top

Image: Bigstock

3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - December 16, 2019

Read MoreHide Full Article

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.

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.

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.

AQR Multi Strategy Alternative I (ASAIX): Expense ratio: 1.96%. Management fee: 1.75%. After expenses, the 5 year return is -1.14%, meaning your fees are far higher than the fund's returns.

HSBC Frontier Markets I (HSFIX). Expense ratio: 1.5%. Management fee: 1.75%. Over the last 5 years, this fund has generated annual returns of -1.06%.

Rydex Energy Services Investor (RYVIX - Free Report) - 1.46% expense ratio, 0.85% management fee. RYVIX is classified as a Sector - Energy mutual fund. Throughout the massive global energy sector, these funds hold a wide range of quickly changing and vitally important industries. RYVIX has generated annual returns of -24.83% 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.

Principal Mid Cap R4 (PMBSX) is a fund that has an expense ratio of 0.97%, and a management fee of 0.58%. PMBSX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With yearly returns of 13.15% over the last five years, this fund clearly wins.

T. Rowe Price Blue Chip Growth Adviser (PABGX) is a stand out fund. PABGX 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 five-year annualized performance of 13.84% and expense ratio of 0.96%, this diversified fund is an attractive buy with a strong history of performance.

Virtus KAR Small-Cap Core A (PKSAX): Expense ratio: 1.29%. Management fee: 0.75%. PKSAX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities. PKSAX has produced a 16.29% 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.

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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Rydex Energy Services Inv (RYVIX) - free report >>

Published in