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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - December 27, 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 coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every 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.
Templeton Global Bond R (FGBRX - Free Report) : 1.12% expense ratio and 0.48% management fee. FGBRX 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. With a five year after-costs return of 0.3%, you're for the most part paying more in charges than returns.
Legg Mason BW International Opportunities Bond C . Expense ratio: 1.75%. Management fee: 0.48%. Over the last 5 years, this fund has generated annual returns of -0.86%.
Iron Horse Fund I : This fund has an expense ratio of 1.7% and management fee of 1.25%. IRHIX is a Long Short - Equity mutual fund, which look at taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline, but overall, hope to minimize their market exposure. With an annual average return of 1.32% 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
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.
Conestoga Smid Cap Investor (CCSMX - Free Report) : Expense ratio: 1.1%. Management fee: 0.85%. CCSMX is a Mid Cap Growth mutual fund. Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers. This fund has achieved five-year annual returns of an astounding 14.51%.
MSIF Global Quality Portfolio IS (MGQSX - Free Report) has an expense ratio of 0.84% and management fee of 0.7%. MGQSX 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 annual returns of 10.22% over the last five years, this is a well-diversified fund with a long track record of success.
City Natural Rochdale US Core Equity & Income N (CNRWX - Free Report) : Expense ratio: 1.03%. Management fee: 0.4%. CNRWX 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. CNRWX has produced a 11.28% over the last five years.
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
3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - December 27, 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 coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every 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.
Templeton Global Bond R (FGBRX - Free Report) : 1.12% expense ratio and 0.48% management fee. FGBRX 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. With a five year after-costs return of 0.3%, you're for the most part paying more in charges than returns.
Legg Mason BW International Opportunities Bond C . Expense ratio: 1.75%. Management fee: 0.48%. Over the last 5 years, this fund has generated annual returns of -0.86%.
Iron Horse Fund I : This fund has an expense ratio of 1.7% and management fee of 1.25%. IRHIX is a Long Short - Equity mutual fund, which look at taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline, but overall, hope to minimize their market exposure. With an annual average return of 1.32% 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
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.
Conestoga Smid Cap Investor (CCSMX - Free Report) : Expense ratio: 1.1%. Management fee: 0.85%. CCSMX is a Mid Cap Growth mutual fund. Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers. This fund has achieved five-year annual returns of an astounding 14.51%.
MSIF Global Quality Portfolio IS (MGQSX - Free Report) has an expense ratio of 0.84% and management fee of 0.7%. MGQSX 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 annual returns of 10.22% over the last five years, this is a well-diversified fund with a long track record of success.
City Natural Rochdale US Core Equity & Income N (CNRWX - Free Report) : Expense ratio: 1.03%. Management fee: 0.4%. CNRWX 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. CNRWX has produced a 11.28% over the last five years.
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.