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3 Mutual Fund Misfires to Avoid - January 03, 2020
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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.
Forester Discovery Fund : 1.35% expense ratio and 1% management fee. INTLX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With a five year after-costs return of -1.48%, you're for the most part paying more in charges than returns.
Timothy Plan Emerging Markets I : 2.33% expense ratio, 1.2% management fee. TIEMX is a Non US - Equity fund. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels. This fund has an annual returns of -1.2% over the last five years. Another fund guilty of having investors pay more in fees than returns.
JPMorgan Research Market Neutral L - 3.26% expense ratio, 0.8% management fee. JPMNX is a Market Neutral - Equity mutual fund. These funds attempt to maximize returns, and usually hold 50% of their securities in a long position and 50% in a short position. JPMNX has generated annual returns of 0.64% over the last five years. Ouch!
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.
Brown Advisory Flexible Equity Adviser (BAFAX - Free Report) is a fund that has an expense ratio of 0.97%, and a management fee of 0.44%. BAFAX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. With yearly returns of 10.1% over the last five years, this fund clearly wins.
AB Large Cap Growth R (ABPRX - Free Report) is a stand out fund. ABPRX 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 five-year annualized performance of 13.96% and expense ratio of 1.26%, this diversified fund is an attractive buy with a strong history of performance.
Fidelity Growth Strategies Fund K (FAGKX - Free Report) : Expense ratio: 0.41%. Management fee: 0.38%. FAGKX is an All Cap Growth mutual fund investing in a wide variety of equities, no matter the size of the company and as long as the firm exhibits growth characteristics. FAGKX has produced a 10.26% over the last five years.
Bottom Line
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
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 - January 03, 2020
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.
Forester Discovery Fund : 1.35% expense ratio and 1% management fee. INTLX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With a five year after-costs return of -1.48%, you're for the most part paying more in charges than returns.
Timothy Plan Emerging Markets I : 2.33% expense ratio, 1.2% management fee. TIEMX is a Non US - Equity fund. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels. This fund has an annual returns of -1.2% over the last five years. Another fund guilty of having investors pay more in fees than returns.
JPMorgan Research Market Neutral L - 3.26% expense ratio, 0.8% management fee. JPMNX is a Market Neutral - Equity mutual fund. These funds attempt to maximize returns, and usually hold 50% of their securities in a long position and 50% in a short position. JPMNX has generated annual returns of 0.64% over the last five years. Ouch!
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.
Brown Advisory Flexible Equity Adviser (BAFAX - Free Report) is a fund that has an expense ratio of 0.97%, and a management fee of 0.44%. BAFAX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. With yearly returns of 10.1% over the last five years, this fund clearly wins.
AB Large Cap Growth R (ABPRX - Free Report) is a stand out fund. ABPRX 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 five-year annualized performance of 13.96% and expense ratio of 1.26%, this diversified fund is an attractive buy with a strong history of performance.
Fidelity Growth Strategies Fund K (FAGKX - Free Report) : Expense ratio: 0.41%. Management fee: 0.38%. FAGKX is an All Cap Growth mutual fund investing in a wide variety of equities, no matter the size of the company and as long as the firm exhibits growth characteristics. FAGKX has produced a 10.26% over the last five years.
Bottom Line
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
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.