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Are You Invested In These 3 Mutual Fund Misfires? - December 24, 2019
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If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your 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.
Wells Fargo Short Duration Government C (MSDCX - Free Report) : This fund has an expense ratio of 1.55% and a management fee of 0.35%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. MSDCX is part of the Government Bond - Short fund category. Often seen as risk-free assets, these funds hold securities issued by the U.S. federal government and they focus on the short end of the curve. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Janus Henderson Emerging Markets A (HEMAX - Free Report) : 1.37% expense ratio, 1% management fee. HEMAX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. This fund has an annual returns of -0.73% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Saratoga Energy & Basic Materials I (SEPIX - Free Report) - 3% expense ratio, 1.25% management fee. This fund has yielded yearly returns of -8.89% 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.
Hartford Core Equity R4 (HGISX - Free Report) is a fund that has an expense ratio of 0.76%, and a management fee of 0.35%. HGISX 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 yearly returns of 11.96% over the last five years, this fund clearly wins.
JPMorgan Intrepid Growth I (JPGSX - Free Report) has an expense ratio of 0.59% and management fee of 0.3%. JPGSX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Thanks to yearly returns of 11.23% over the last five years, JPGSX is an effectively diversified fund with a long reputation of solidly positive performance.
T. Rowe Price Institutional Small-Cap Stock (TRSSX - Free Report) is an attractive fund with a five-year annualized return of 11.99% and an expense ratio of just 0.66%. TRSSX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities.
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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Are You Invested In These 3 Mutual Fund Misfires? - December 24, 2019
If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your 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.
Wells Fargo Short Duration Government C (MSDCX - Free Report) : This fund has an expense ratio of 1.55% and a management fee of 0.35%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. MSDCX is part of the Government Bond - Short fund category. Often seen as risk-free assets, these funds hold securities issued by the U.S. federal government and they focus on the short end of the curve. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Janus Henderson Emerging Markets A (HEMAX - Free Report) : 1.37% expense ratio, 1% management fee. HEMAX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. This fund has an annual returns of -0.73% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Saratoga Energy & Basic Materials I (SEPIX - Free Report) - 3% expense ratio, 1.25% management fee. This fund has yielded yearly returns of -8.89% 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.
Hartford Core Equity R4 (HGISX - Free Report) is a fund that has an expense ratio of 0.76%, and a management fee of 0.35%. HGISX 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 yearly returns of 11.96% over the last five years, this fund clearly wins.
JPMorgan Intrepid Growth I (JPGSX - Free Report) has an expense ratio of 0.59% and management fee of 0.3%. JPGSX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. Thanks to yearly returns of 11.23% over the last five years, JPGSX is an effectively diversified fund with a long reputation of solidly positive performance.
T. Rowe Price Institutional Small-Cap Stock (TRSSX - Free Report) is an attractive fund with a five-year annualized return of 11.99% and an expense ratio of just 0.66%. TRSSX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities.
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.