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Mutual Fund Misfires of the Market - December 19, 2019
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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.
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.
Templeton Global Balanced Fund A (TAGBX - Free Report) : 1.2% expense ratio and 0.73% management fee. TAGBX 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. With a five year after-costs return of 0%, you're for the most part paying more in charges than returns.
First Investor International Opportunities Bond Adviser : 1.14% expense ratio, 0.75% management fee. FIODX is an International Bond - Developed fund, and these funds funds focus on fixed income securities from developed nations apart from the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. This fund has an annual returns of -0.32% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Alpine International Real Estate A - 1.62% expense ratio, 1% management fee. This fund has yielded yearly returns of 0.62% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
DoubleLine Shiller Enhanced CAPE N (DSENX - Free Report) : Expense ratio: 0.8%. Management fee: 0.45%. DSENX 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. This fund has achieved five-year annual returns of an astounding 13.67%.
MFS Mass Investors Growth Stock R5 (MIGNX - Free Report) has an expense ratio of 0.38% and management fee of 0.33%. MIGNX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. Thanks to yearly returns of 14.01% over the last five years, MIGNX is an effectively diversified fund with a long reputation of solidly positive performance.
Direxion Monthly S&P 500 Bull 2X Investor (DXSLX - Free Report) is an attractive fund with a five-year annualized return of 16.83% and an expense ratio of just 1.35%. DXSLX is an Allocation Balanced mutual fund. Allocation Balanced funds look to invest across asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation.
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
Mutual Fund Misfires of the Market - December 19, 2019
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.
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.
Templeton Global Balanced Fund A (TAGBX - Free Report) : 1.2% expense ratio and 0.73% management fee. TAGBX 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. With a five year after-costs return of 0%, you're for the most part paying more in charges than returns.
First Investor International Opportunities Bond Adviser : 1.14% expense ratio, 0.75% management fee. FIODX is an International Bond - Developed fund, and these funds funds focus on fixed income securities from developed nations apart from the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. This fund has an annual returns of -0.32% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Alpine International Real Estate A - 1.62% expense ratio, 1% management fee. This fund has yielded yearly returns of 0.62% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
DoubleLine Shiller Enhanced CAPE N (DSENX - Free Report) : Expense ratio: 0.8%. Management fee: 0.45%. DSENX 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. This fund has achieved five-year annual returns of an astounding 13.67%.
MFS Mass Investors Growth Stock R5 (MIGNX - Free Report) has an expense ratio of 0.38% and management fee of 0.33%. MIGNX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. Thanks to yearly returns of 14.01% over the last five years, MIGNX is an effectively diversified fund with a long reputation of solidly positive performance.
Direxion Monthly S&P 500 Bull 2X Investor (DXSLX - Free Report) is an attractive fund with a five-year annualized return of 16.83% and an expense ratio of just 1.35%. DXSLX is an Allocation Balanced mutual fund. Allocation Balanced funds look to invest across asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation.
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.