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Mutual Fund Misfires of the Market - December 24, 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.
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.
Janus Henderson Diversified Alternatives T : 1.29% expense ratio and 1% management fee. JDATX 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. With a five year after-costs return of 1%, you're for the most part paying more in charges than returns.
Rydex Emerging Market 2X Strategy H (RYWVX - Free Report) . Expense ratio: 1.85%. Management fee: 1%. Over the last 5 years, this fund has generated annual returns of -4.02%.
Leader Short-Term Bond Fund C : This fund has an expense ratio of 2.16% and management fee of 0.75%. LCMCX is an Investment Grade Bond - Short option; these funds focus on the short end of the curve, generally with bonds that mature in less than two years. With an annual average return of -0.75% 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
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.
BMO Low Volatility Equity I : 0.65% expense ratio and 0.5% management fee. MLVEX 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 10.13% over the last five years, this fund is a winner.
Neuberger Berman Real Estate Fund R6 (NRREX - Free Report) has an expense ratio of 0.76% and management fee of 0.85%. NRREX is a Sector - Real Estate fund, and these kinds of mutual funds typically invest in eeal estate investment trusts (REITs) due to their taxation rules. Thanks to yearly returns of 11.04% over the last five years, NRREX is an effectively diversified fund with a long reputation of solidly positive performance.
Brown Advisory Growth Equity Institutional (BAFGX - Free Report) has an expense ratio of 0.7% and management fee of 0.59%. BAFGX 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. With yearly returns of 14.14% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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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Mutual Fund Misfires of the Market - December 24, 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.
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.
Janus Henderson Diversified Alternatives T : 1.29% expense ratio and 1% management fee. JDATX 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. With a five year after-costs return of 1%, you're for the most part paying more in charges than returns.
Rydex Emerging Market 2X Strategy H (RYWVX - Free Report) . Expense ratio: 1.85%. Management fee: 1%. Over the last 5 years, this fund has generated annual returns of -4.02%.
Leader Short-Term Bond Fund C : This fund has an expense ratio of 2.16% and management fee of 0.75%. LCMCX is an Investment Grade Bond - Short option; these funds focus on the short end of the curve, generally with bonds that mature in less than two years. With an annual average return of -0.75% 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
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.
BMO Low Volatility Equity I : 0.65% expense ratio and 0.5% management fee. MLVEX 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 10.13% over the last five years, this fund is a winner.
Neuberger Berman Real Estate Fund R6 (NRREX - Free Report) has an expense ratio of 0.76% and management fee of 0.85%. NRREX is a Sector - Real Estate fund, and these kinds of mutual funds typically invest in eeal estate investment trusts (REITs) due to their taxation rules. Thanks to yearly returns of 11.04% over the last five years, NRREX is an effectively diversified fund with a long reputation of solidly positive performance.
Brown Advisory Growth Equity Institutional (BAFGX - Free Report) has an expense ratio of 0.7% and management fee of 0.59%. BAFGX 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. With yearly returns of 14.14% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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.