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Avoid These 3 Mutual Fund Misfires - December 23, 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.
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.
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.
Rydex Energy Services H (RYVAX - Free Report) : 1.7% expense ratio and 0.85% management fee. RYVAX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With a five year after-expenses return of -25.06%, you're mostly paying more in fees than returns.
Russell Emerging Markets S (REMSX - Free Report) : 1.41% expense ratio, 1.14%. REMSX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has yearly returns of 1.39% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
First Eagle Fund of America C (FEAMX - Free Report) - 2.15% expense ratio, 0.9% management fee. FEAMX, an All Cap Value option, is a type of mutual fund that buys stakes in companies in all three valuation categories. FEAMX has generated annual returns of 1.37% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
MFS Research Fund I (MRFIX - Free Report) is a fund that has an expense ratio of 0.56%, and a management fee of 0.43%. MRFIX 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. With yearly returns of 11% over the last five years, this fund clearly wins.
Janus Henderson Global Technology D (JNGTX - Free Report) : Expense ratio: 0.84%. Management fee: 0.64%. JNGTX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. JNGTX has managed to produce a robust 18.78% over the last five years.
T. Rowe Price Institutional Mid-Cap Equity Growth (PMEGX - Free Report) : Expense ratio: 0.61%. Management fee: 0.6%. PMEGX 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. PMEGX has produced a 13.83% 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.
Image: Bigstock
Avoid These 3 Mutual Fund Misfires - December 23, 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.
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.
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.
Rydex Energy Services H (RYVAX - Free Report) : 1.7% expense ratio and 0.85% management fee. RYVAX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With a five year after-expenses return of -25.06%, you're mostly paying more in fees than returns.
Russell Emerging Markets S (REMSX - Free Report) : 1.41% expense ratio, 1.14%. REMSX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has yearly returns of 1.39% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
First Eagle Fund of America C (FEAMX - Free Report) - 2.15% expense ratio, 0.9% management fee. FEAMX, an All Cap Value option, is a type of mutual fund that buys stakes in companies in all three valuation categories. FEAMX has generated annual returns of 1.37% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
MFS Research Fund I (MRFIX - Free Report) is a fund that has an expense ratio of 0.56%, and a management fee of 0.43%. MRFIX 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. With yearly returns of 11% over the last five years, this fund clearly wins.
Janus Henderson Global Technology D (JNGTX - Free Report) : Expense ratio: 0.84%. Management fee: 0.64%. JNGTX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. JNGTX has managed to produce a robust 18.78% over the last five years.
T. Rowe Price Institutional Mid-Cap Equity Growth (PMEGX - Free Report) : Expense ratio: 0.61%. Management fee: 0.6%. PMEGX 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. PMEGX has produced a 13.83% 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.