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Mutual Fund Misfires of the Market - 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.

How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each 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.

Brookfield Global Listed Infrastructure A (BGLAX - Free Report) : Expense ratio: 1.35%. Management fee: 0.85%. After expenses, the 5 year return is 0.13%, meaning your fees are far higher than the fund's returns.

Invesco International Small Company A (IEGAX - Free Report) : 1.58% expense ratio, 0.93% management fee. IEGAX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. This fund has an annual returns of 0.45% over the last five years. Another fund guilty of having investors pay more in fees than returns.

ProFunds UltraSector Oil & Gas Investor (ENPIX - Free Report) : This fund has an expense ratio of 1.74% and management fee of 0.75%. ENPIX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With an annual average return of -13.39% 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.

Transamerica Large Growth R4 (TGWFX - Free Report) : Expense ratio: 0.9%. Management fee: 0.65%. TGWFX 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. This fund has achieved five-year annual returns of an astounding 12.98%.

Janus Henderson Enterprise S (JGRTX - Free Report) is a stand out fund. JGRTX 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 five-year annualized performance of 14.41% and expense ratio of 1.16%, this diversified fund is an attractive buy with a strong history of performance.

Diamond Hill Large Cap Fund I (DHLRX - Free Report) : Expense ratio: 0.67%. Management fee: 0.5%. DHLRX 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. DHLRX has produced a 10.92% over the last five years.

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.

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