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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - 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 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.
Invesco International Small Company C (IEGCX - Free Report) : Expense ratio: 2.33%. Management fee: 0.93%. After expenses, the 5 year return is 0.77%, meaning your fees are far higher than the fund's returns.
Rational Dividend Capture Institutional (HDCTX - Free Report) . Expense ratio: 1%. Management fee: 0.93%. Over the last 5 years, this fund has generated annual returns of -0.35%.
AB Allocation Market Real Return Z (AMTZX - Free Report) - 0.84% expense ratio, 0.75% management fee. AMTZX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. AMTZX has generated annual returns of -2.3% 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.
JPMorgan Large Cap Growth I (SEEGX - Free Report) : Expense ratio: 0.68%. Management fee: 0.45%. SEEGX 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 14.14%.
T. Rowe Price Mid-Cap Growth Adviser (PAMCX - Free Report) has an expense ratio of 1.01% and management fee of 0.61%. PAMCX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With annual returns of 12.87% over the last five years, this is a well-diversified fund with a long track record of success.
Vanguard Global Mineral Volatility Investor (VMVFX - Free Report) is an attractive fund with a five-year annualized return of 10.47% and an expense ratio of just 0.22%. VMVFX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy.
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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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - 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.
Invesco International Small Company C (IEGCX - Free Report) : Expense ratio: 2.33%. Management fee: 0.93%. After expenses, the 5 year return is 0.77%, meaning your fees are far higher than the fund's returns.
Rational Dividend Capture Institutional (HDCTX - Free Report) . Expense ratio: 1%. Management fee: 0.93%. Over the last 5 years, this fund has generated annual returns of -0.35%.
AB Allocation Market Real Return Z (AMTZX - Free Report) - 0.84% expense ratio, 0.75% management fee. AMTZX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. AMTZX has generated annual returns of -2.3% 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.
JPMorgan Large Cap Growth I (SEEGX - Free Report) : Expense ratio: 0.68%. Management fee: 0.45%. SEEGX 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 14.14%.
T. Rowe Price Mid-Cap Growth Adviser (PAMCX - Free Report) has an expense ratio of 1.01% and management fee of 0.61%. PAMCX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With annual returns of 12.87% over the last five years, this is a well-diversified fund with a long track record of success.
Vanguard Global Mineral Volatility Investor (VMVFX - Free Report) is an attractive fund with a five-year annualized return of 10.47% and an expense ratio of just 0.22%. VMVFX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy.
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.