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3 Mutual Fund Misfires to Avoid - January 08, 2020
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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.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
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.
First Eagle Fund of America C (FEAMX - Free Report) : 2.15% expense ratio and 0.9% management fee. FEAMX is an All Cap Value mutual fund, which invests in small, medium, and large-cap companies, though they end up focusing on bigger firms due to percentage of assets. With a five year after-expenses return of 1.37%, you're mostly paying more in fees than returns.
PACE International Emerging Markets Equity A (PWEAX - Free Report) . Expense ratio: 1.7%. Management fee: 0.9%. Over the last 5 years, this fund has generated annual returns of -0.63%.
Optimum Small Mid-Cap Value C (OCSVX - Free Report) - 2.21% expense ratio, 0.95% management fee. This fund has yielded yearly returns of 1.86% 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.
MFS Mid-Cap Growth Fund R3 (OTCHX - Free Report) is a fund that has an expense ratio of 1.09%, and a management fee of 0.71%. OTCHX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With yearly returns of 13.54% over the last five years, this fund clearly wins.
Jensen Quality Growth Fund I (JENIX - Free Report) has an expense ratio of 0.61% and management fee of 0.49%. JENIX 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. Thanks to yearly returns of 13.54% over the last five years, JENIX is an effectively diversified fund with a long reputation of solidly positive performance.
Boston Trust Small Cap Fund (BOSOX - Free Report) has an expense ratio of 1% and management fee of 0.75%. BOSOX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With annual returns of 10.63% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.
Image: Bigstock
3 Mutual Fund Misfires to Avoid - January 08, 2020
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.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
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.
First Eagle Fund of America C (FEAMX - Free Report) : 2.15% expense ratio and 0.9% management fee. FEAMX is an All Cap Value mutual fund, which invests in small, medium, and large-cap companies, though they end up focusing on bigger firms due to percentage of assets. With a five year after-expenses return of 1.37%, you're mostly paying more in fees than returns.
PACE International Emerging Markets Equity A (PWEAX - Free Report) . Expense ratio: 1.7%. Management fee: 0.9%. Over the last 5 years, this fund has generated annual returns of -0.63%.
Optimum Small Mid-Cap Value C (OCSVX - Free Report) - 2.21% expense ratio, 0.95% management fee. This fund has yielded yearly returns of 1.86% 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.
MFS Mid-Cap Growth Fund R3 (OTCHX - Free Report) is a fund that has an expense ratio of 1.09%, and a management fee of 0.71%. OTCHX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With yearly returns of 13.54% over the last five years, this fund clearly wins.
Jensen Quality Growth Fund I (JENIX - Free Report) has an expense ratio of 0.61% and management fee of 0.49%. JENIX 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. Thanks to yearly returns of 13.54% over the last five years, JENIX is an effectively diversified fund with a long reputation of solidly positive performance.
Boston Trust Small Cap Fund (BOSOX - Free Report) has an expense ratio of 1% and management fee of 0.75%. BOSOX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With annual returns of 10.63% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.