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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - December 20, 2019
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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.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
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.
Ascendant Deep Value Convertibles A : 2.4% expense ratio and 1.15% management fee. AEQAX 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 -1.28%, you're for the most part paying more in charges than returns.
Lord Abbett Inflation Focused F (LIFFX - Free Report) : 0.58% expense ratio, 0.3%. LIFFX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. This fund has yearly returns of -0.14% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
PACE International Emerging Markets Equity A (PWEAX - Free Report) - 1.7% expense ratio, 1% management fee. PWEAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. PWEAX has generated annual returns of -0.63% over the last five years. Ouch!
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.
AB Discovery Growth K (CHCKX - Free Report) : 1.08% expense ratio and 0.61% management fee. CHCKX 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 an annual return of 10.05% over the last five years, this fund is a winner.
MFS Research R2 (MSRRX - Free Report) is a stand out fund. MSRRX 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 10.45% and expense ratio of 1.06%, this diversified fund is an attractive buy with a strong history of performance.
Fidelity Advisor Small Cap Growth A (FCAGX - Free Report) : Expense ratio: 1.32%. Management fee: 0.84%. FCAGX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. FCAGX has produced a 12.69% over the last five years.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
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.
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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - December 20, 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.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
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.
Ascendant Deep Value Convertibles A : 2.4% expense ratio and 1.15% management fee. AEQAX 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 -1.28%, you're for the most part paying more in charges than returns.
Lord Abbett Inflation Focused F (LIFFX - Free Report) : 0.58% expense ratio, 0.3%. LIFFX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. This fund has yearly returns of -0.14% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
PACE International Emerging Markets Equity A (PWEAX - Free Report) - 1.7% expense ratio, 1% management fee. PWEAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. PWEAX has generated annual returns of -0.63% over the last five years. Ouch!
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.
AB Discovery Growth K (CHCKX - Free Report) : 1.08% expense ratio and 0.61% management fee. CHCKX 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 an annual return of 10.05% over the last five years, this fund is a winner.
MFS Research R2 (MSRRX - Free Report) is a stand out fund. MSRRX 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 10.45% and expense ratio of 1.06%, this diversified fund is an attractive buy with a strong history of performance.
Fidelity Advisor Small Cap Growth A (FCAGX - Free Report) : Expense ratio: 1.32%. Management fee: 0.84%. FCAGX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. FCAGX has produced a 12.69% over the last five years.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
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.