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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
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.
Pzena Emerging Markets Value Inv (PZVEX): Expense ratio: 1.58%. Management fee: 1%. After expenses, the 5 year return is 0.07%, meaning your fees are far higher than the fund's returns.
MainStay Cushing Royalty Energy Income I (CURZX): 1.2% expense ratio, 0.95%. CURZX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. This fund has yearly returns of -23.99% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Invesco Global Mkt Neutral Fd Cl A - 1.49% expense ratio, 0.95% management fee. This fund has yielded yearly returns of -4.93% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
Hartford Stock HLS IA (HSTAX) is a winner, with an expense ratio of just 0.52% and a five-year annualized return track record of 11.79%.
Nuveen Winslow Large-Cap Growth R6 (NWCFX) is a stand out fund. NWCFX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. With five-year annualized performance of 12.82% and expense ratio of 0.57%, this diversified fund is an attractive buy with a strong history of performance.
Davenport Equity Opportunities Fund (DEOPX) has an expense ratio of 0.91% and management fee of 0.75%. DEOPX 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 annual returns of 10.54% over the last five years, this fund is a well-diversified fund with a long track record of success.
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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