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Avoid These 3 Mutual Fund Misfires - January 06, 2020
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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.
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.
Hartford Global Real Asset Y (HRLYX - Free Report) : 0.9% expense ratio and 0.85% management fee. HRLYX 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-expenses return of -1.51%, you're mostly paying more in fees than returns.
Templeton Global Total Return C (TTRCX - Free Report) : 1.37% expense ratio, 0.61% management fee. TTRCX is classified as a Diversified Bonds fund, which offers exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. This fund has an annual returns of 0.75% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Oppenheimer SteelPath MLP Alpha I (OSPAX - Free Report) - 1.23% expense ratio, 1.1% management fee. OSPAX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. OSPAX has generated annual returns of -7.16% 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.
Principal Mid Cap J (PMBJX - Free Report) is a winner, with an expense ratio of just 0.83% and a five-year annualized return track record of 13.31%.
Fidelity Advisor Series Equity Gr (FMFMX - Free Report) has an expense ratio of 0.01% and management fee of 0%. FMFMX 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 annual returns of 12.57% over the last five years, this is a well-diversified fund with a long track record of success.
Neuberger Berman Real Estate Fund Trust (NBRFX - Free Report) : Expense ratio: 1.04%. Management fee: 1.2%. NBRFX is categorized as a Sector - Real Estate mutual fund, which typically invests in various real estate investment trusts (REIT) due to their taxation rules. NBRFX has produced a 10.76% over the last five years.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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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Avoid These 3 Mutual Fund Misfires - January 06, 2020
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.
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.
Hartford Global Real Asset Y (HRLYX - Free Report) : 0.9% expense ratio and 0.85% management fee. HRLYX 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-expenses return of -1.51%, you're mostly paying more in fees than returns.
Templeton Global Total Return C (TTRCX - Free Report) : 1.37% expense ratio, 0.61% management fee. TTRCX is classified as a Diversified Bonds fund, which offers exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. This fund has an annual returns of 0.75% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Oppenheimer SteelPath MLP Alpha I (OSPAX - Free Report) - 1.23% expense ratio, 1.1% management fee. OSPAX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. OSPAX has generated annual returns of -7.16% 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.
Principal Mid Cap J (PMBJX - Free Report) is a winner, with an expense ratio of just 0.83% and a five-year annualized return track record of 13.31%.
Fidelity Advisor Series Equity Gr (FMFMX - Free Report) has an expense ratio of 0.01% and management fee of 0%. FMFMX 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 annual returns of 12.57% over the last five years, this is a well-diversified fund with a long track record of success.
Neuberger Berman Real Estate Fund Trust (NBRFX - Free Report) : Expense ratio: 1.04%. Management fee: 1.2%. NBRFX is categorized as a Sector - Real Estate mutual fund, which typically invests in various real estate investment trusts (REIT) due to their taxation rules. NBRFX has produced a 10.76% over the last five years.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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.