We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Avoid These 3 Mutual Fund Misfires - January 08, 2020
Read MoreHide Full Article
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 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.
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.
Templeton Growth R (TEGRX - Free Report) : Expense ratio: 1.31%. Management fee: 0.68%. After expenses, the 5 year return is 0.96%, meaning your fees are far higher than the fund's returns.
Aberdeen International Equity A (GIGAX - Free Report) . Expense ratio: 1.53%. Management fee: 0.68%. Over the last 5 years, this fund has generated annual returns of -1.06%.
ProFunds Biotech Ultra Sector Service Class (BIPSX - Free Report) - 2.52% expense ratio, 0.75% management fee. BIPSX is classified as a Sector - Health fund. Healthcare is one of the biggest sectors of the American economy, and these kinds of mutual funds provide a great opportunity to invest in this industry. BIPSX has generated annual returns of -0.97% 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.
AB Small Cap Growth I (QUAIX - Free Report) : Expense ratio: 0.9%. Management fee: 0.75%. QUAIX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. This fund has achieved five-year annual returns of an astounding 12.07%.
MFS Research Fund I (MRFIX - Free Report) has an expense ratio of 0.56% and management fee of 0.43%. MRFIX 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 annual returns of 11% over the last five years, this is a well-diversified fund with a long track record of success.
TIAA-CREF Real Estate Security Institutional (TIREX - Free Report) is an attractive fund with a five-year annualized return of 11.85% and an expense ratio of just 0.51%. Sector - Real Estate funds like TIREX are known to invest in real estate investment trusts (REITs). A popular income vehicle thanks to its taxation rules, a REIT is required to pay out at least 90% of its income annually to avoid double taxation.
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
Avoid 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 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.
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.
Templeton Growth R (TEGRX - Free Report) : Expense ratio: 1.31%. Management fee: 0.68%. After expenses, the 5 year return is 0.96%, meaning your fees are far higher than the fund's returns.
Aberdeen International Equity A (GIGAX - Free Report) . Expense ratio: 1.53%. Management fee: 0.68%. Over the last 5 years, this fund has generated annual returns of -1.06%.
ProFunds Biotech Ultra Sector Service Class (BIPSX - Free Report) - 2.52% expense ratio, 0.75% management fee. BIPSX is classified as a Sector - Health fund. Healthcare is one of the biggest sectors of the American economy, and these kinds of mutual funds provide a great opportunity to invest in this industry. BIPSX has generated annual returns of -0.97% 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.
AB Small Cap Growth I (QUAIX - Free Report) : Expense ratio: 0.9%. Management fee: 0.75%. QUAIX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. This fund has achieved five-year annual returns of an astounding 12.07%.
MFS Research Fund I (MRFIX - Free Report) has an expense ratio of 0.56% and management fee of 0.43%. MRFIX 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 annual returns of 11% over the last five years, this is a well-diversified fund with a long track record of success.
TIAA-CREF Real Estate Security Institutional (TIREX - Free Report) is an attractive fund with a five-year annualized return of 11.85% and an expense ratio of just 0.51%. Sector - Real Estate funds like TIREX are known to invest in real estate investment trusts (REITs). A popular income vehicle thanks to its taxation rules, a REIT is required to pay out at least 90% of its income annually to avoid double taxation.
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.