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Are You Invested In These 3 Mutual Fund Misfires? - January 08, 2020
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You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
High fees plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Russell Emerging Markets S (REMSX - Free Report) : This fund has an expense ratio of 1.41% and a management fee of 1.14%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. REMSX 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. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Brookfield Global Listed Infrastructure C (BGLCX - Free Report) : BGLCX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. BGLCX offers an expense ratio of 2.1% and annual returns of 0.34% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
Rydex Energy Services H (RYVAX - Free Report) : This fund has an expense ratio of 1.7% and management fee of 0.85%. RYVAX 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 -25.06% 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
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Janus Henderson Global Technology D (JNGTX - Free Report) : 0.84% expense ratio and 0.64% management fee. JNGTX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. With an annual return of 18.78% over the last five years, this fund is a winner.
JPMorgan Large Cap Growth C (OLGCX - Free Report) : Expense ratio: 1.43%. Management fee: 0.45%. OLGCX 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. OLGCX has managed to produce a robust 13.36% over the last five years.
Baird Midcap Institutional (BMDIX - Free Report) has an expense ratio of 0.81% and management fee of 0.75%. BMDIX 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 annual returns of 11.06% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.
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Are You Invested In These 3 Mutual Fund Misfires? - January 08, 2020
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
High fees plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Russell Emerging Markets S (REMSX - Free Report) : This fund has an expense ratio of 1.41% and a management fee of 1.14%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. REMSX 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. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Brookfield Global Listed Infrastructure C (BGLCX - Free Report) : BGLCX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. BGLCX offers an expense ratio of 2.1% and annual returns of 0.34% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
Rydex Energy Services H (RYVAX - Free Report) : This fund has an expense ratio of 1.7% and management fee of 0.85%. RYVAX 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 -25.06% 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
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Janus Henderson Global Technology D (JNGTX - Free Report) : 0.84% expense ratio and 0.64% management fee. JNGTX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. With an annual return of 18.78% over the last five years, this fund is a winner.
JPMorgan Large Cap Growth C (OLGCX - Free Report) : Expense ratio: 1.43%. Management fee: 0.45%. OLGCX 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. OLGCX has managed to produce a robust 13.36% over the last five years.
Baird Midcap Institutional (BMDIX - Free Report) has an expense ratio of 0.81% and management fee of 0.75%. BMDIX 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 annual returns of 11.06% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.