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Are You Invested In These 3 Mutual Fund Misfires? - January 10, 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.
Aberdeen Global Equity Fund C (GLLCX - Free Report) : Expense ratio: 2.19%. Management fee: 0.9%. After expenses, the 5 year return is 1.48%, meaning your fees are far higher than the fund's returns.
Hartford Inflation Plus C (HIPCX - Free Report) : 1.6% expense ratio, 0.5% management fee. HIPCX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. This fund has an annual returns of 0.88% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Frank Value Fund Investor (FRNKX - Free Report) - 1.49% expense ratio, 0.99% management fee. FRNKX is a Mid Cap Blend mutual fund that typically features a portfolio filled with stocks of various sizes and styles; it allows for a diversification strategy focusing on companies with market caps between $2 billion and $10 billion. FRNKX has generated annual returns of -0.85% 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.
T. Rowe Price Capital Opportunity A (PACOX - Free Report) is a winner, with an expense ratio of just 0.93% and a five-year annualized return track record of 10.88%.
MFS Growth Fund I (MFEIX - Free Report) has an expense ratio of 0.66% and management fee of 0.55%. MFEIX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. With annual returns of 14.5% over the last five years, this is a well-diversified fund with a long track record of success.
Nicholas II Fund N (NNTWX - Free Report) has an expense ratio of 0.96% and management fee of 0.52%. NNTWX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With yearly returns of 11.14% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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 10, 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.
Aberdeen Global Equity Fund C (GLLCX - Free Report) : Expense ratio: 2.19%. Management fee: 0.9%. After expenses, the 5 year return is 1.48%, meaning your fees are far higher than the fund's returns.
Hartford Inflation Plus C (HIPCX - Free Report) : 1.6% expense ratio, 0.5% management fee. HIPCX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. This fund has an annual returns of 0.88% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Frank Value Fund Investor (FRNKX - Free Report) - 1.49% expense ratio, 0.99% management fee. FRNKX is a Mid Cap Blend mutual fund that typically features a portfolio filled with stocks of various sizes and styles; it allows for a diversification strategy focusing on companies with market caps between $2 billion and $10 billion. FRNKX has generated annual returns of -0.85% 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.
T. Rowe Price Capital Opportunity A (PACOX - Free Report) is a winner, with an expense ratio of just 0.93% and a five-year annualized return track record of 10.88%.
MFS Growth Fund I (MFEIX - Free Report) has an expense ratio of 0.66% and management fee of 0.55%. MFEIX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. With annual returns of 14.5% over the last five years, this is a well-diversified fund with a long track record of success.
Nicholas II Fund N (NNTWX - Free Report) has an expense ratio of 0.96% and management fee of 0.52%. NNTWX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With yearly returns of 11.14% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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.