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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - December 18, 2019
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You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
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.
Ivy Cundill Global Value Y : 1.36% expense ratio and 1% management fee. ICDYX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With a five year after-costs return of -0.66%, you're for the most part paying more in charges than returns.
Pacific Advisors Mid Cap Value A : 6.75% expense ratio, 1% management fee. PAMVX is a Mid Cap Blend mutual fund, and usually features a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on mid cap companies. This fund has an annual returns of -4.62% over the last five years. Another fund guilty of having investors pay more in fees than returns.
First Eagle Fund of America A (FEFAX - Free Report) : This fund has an expense ratio of 1.4% and management fee of 0.9%. FEFAX is categorized as an All Cap Value fund, and like the name suggests, invests across the cap spectrum in small-cap, mid-cap, and large-cap companies. With an annual average return of 1.14% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Hartford Core Equity A (HAIAX - Free Report) : 0.73% expense ratio and 0.35% management fee. HAIAX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. With an annual return of 10.78% over the last five years, this fund is a winner.
Eagle Mid Cap Growth A (HAGAX - Free Report) is a stand out fund. HAGAX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With five-year annualized performance of 10.41% and expense ratio of 1.05%, this diversified fund is an attractive buy with a strong history of performance.
Red Oak Technology Select (ROGSX - Free Report) has an expense ratio of 0.94% and management fee of 0.74%. With a much more diversified approach, ROGSX--part of the Sector - Tech mutual fund category--gives investors a way to own a stake in the notoriously risky tech sector. With annual returns of 17.03% 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
Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - December 18, 2019
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
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.
Ivy Cundill Global Value Y : 1.36% expense ratio and 1% management fee. ICDYX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With a five year after-costs return of -0.66%, you're for the most part paying more in charges than returns.
Pacific Advisors Mid Cap Value A : 6.75% expense ratio, 1% management fee. PAMVX is a Mid Cap Blend mutual fund, and usually features a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on mid cap companies. This fund has an annual returns of -4.62% over the last five years. Another fund guilty of having investors pay more in fees than returns.
First Eagle Fund of America A (FEFAX - Free Report) : This fund has an expense ratio of 1.4% and management fee of 0.9%. FEFAX is categorized as an All Cap Value fund, and like the name suggests, invests across the cap spectrum in small-cap, mid-cap, and large-cap companies. With an annual average return of 1.14% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Hartford Core Equity A (HAIAX - Free Report) : 0.73% expense ratio and 0.35% management fee. HAIAX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. With an annual return of 10.78% over the last five years, this fund is a winner.
Eagle Mid Cap Growth A (HAGAX - Free Report) is a stand out fund. HAGAX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With five-year annualized performance of 10.41% and expense ratio of 1.05%, this diversified fund is an attractive buy with a strong history of performance.
Red Oak Technology Select (ROGSX - Free Report) has an expense ratio of 0.94% and management fee of 0.74%. With a much more diversified approach, ROGSX--part of the Sector - Tech mutual fund category--gives investors a way to own a stake in the notoriously risky tech sector. With annual returns of 17.03% 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.