We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Mutual Fund Misfires to Avoid - December 17, 2019
Read MoreHide Full Article
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.
Timothy Plan Emerging Markets A : Expense ratio: 2.58%. Management fee: 1.2%. After expenses, the 5 year return is -2.53%, meaning your fees are far higher than the fund's returns.
Invesco Global Mkt Neutral R6 : 1.24% expense ratio, 0.95%. MKNSX is a Market Neutral - Equity mutual fund. These portfolios usually hold 50% of their securities in a long position, as well as 50% in a short position. This fund has yearly returns of -3.14% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Franklin Low Duration Total Return C (FLDCX - Free Report) - 1.07% expense ratio, 0.5% management fee. This fund has yielded yearly returns of 1.01% 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.
Davis Real Estate Y (DREYX - Free Report) is a winner, with an expense ratio of just 0.73% and a five-year annualized return track record of 10.78%.
Putnam Growth Opportunities R5 (PGODX - Free Report) is a stand out fund. PGODX 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 13.47% and expense ratio of 0.76%, this diversified fund is an attractive buy with a strong history of performance.
Oppenheimer Discovery R (ODINX - Free Report) has an expense ratio of 1.33% and management fee of 0.63%. ODINX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With annual returns of 12.03% over the last five years, this fund is a well-diversified fund with a long track record of success.
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 17, 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.
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.
Timothy Plan Emerging Markets A : Expense ratio: 2.58%. Management fee: 1.2%. After expenses, the 5 year return is -2.53%, meaning your fees are far higher than the fund's returns.
Invesco Global Mkt Neutral R6 : 1.24% expense ratio, 0.95%. MKNSX is a Market Neutral - Equity mutual fund. These portfolios usually hold 50% of their securities in a long position, as well as 50% in a short position. This fund has yearly returns of -3.14% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Franklin Low Duration Total Return C (FLDCX - Free Report) - 1.07% expense ratio, 0.5% management fee. This fund has yielded yearly returns of 1.01% 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.
Davis Real Estate Y (DREYX - Free Report) is a winner, with an expense ratio of just 0.73% and a five-year annualized return track record of 10.78%.
Putnam Growth Opportunities R5 (PGODX - Free Report) is a stand out fund. PGODX 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 13.47% and expense ratio of 0.76%, this diversified fund is an attractive buy with a strong history of performance.
Oppenheimer Discovery R (ODINX - Free Report) has an expense ratio of 1.33% and management fee of 0.63%. ODINX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With annual returns of 12.03% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.