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Are You Invested In These 3 Mutual Fund Misfires? - January 13, 2020
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If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your 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.
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.
Ascendant Deep Value Convertibles A : 2.4% expense ratio and 1.15% management fee. AEQAX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With a five year after-costs return of -1.28%, you're for the most part paying more in charges than returns.
ClearBridge International Small Cap C : LCOCX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. LCOCX offers an expense ratio of 2.12% and annual returns of -0.38% 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.
Lord Abbett Inflation Focused I (LIFIX - Free Report) - 0.48% expense ratio, 0.3% management fee. This fund has yielded yearly returns of 0.05% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
BlackRock Advantage Large Cap Growth R (BMCRX - Free Report) is a winner, with an expense ratio of just 1.12% and a five-year annualized return track record of 10.27%.
Artisan Global Opportunities Institutional (APHRX - Free Report) : Expense ratio: 0.91%. Management fee: 0.88%. APHRX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. APHRX has managed to produce a robust 10.84% over the last five years.
Columbia Seligman Communications and Information Z (CCIZX - Free Report) is an attractive fund with a five-year annualized return of 17.5% and an expense ratio of just 0.99%. With a much more diversified approach, CCIZX--part of the Sector - Tech mutual fund category--gives investors a way to own a stake in the notoriously risky tech sector.
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 13, 2020
If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your 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.
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.
Ascendant Deep Value Convertibles A : 2.4% expense ratio and 1.15% management fee. AEQAX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With a five year after-costs return of -1.28%, you're for the most part paying more in charges than returns.
ClearBridge International Small Cap C : LCOCX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. LCOCX offers an expense ratio of 2.12% and annual returns of -0.38% 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.
Lord Abbett Inflation Focused I (LIFIX - Free Report) - 0.48% expense ratio, 0.3% management fee. This fund has yielded yearly returns of 0.05% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
BlackRock Advantage Large Cap Growth R (BMCRX - Free Report) is a winner, with an expense ratio of just 1.12% and a five-year annualized return track record of 10.27%.
Artisan Global Opportunities Institutional (APHRX - Free Report) : Expense ratio: 0.91%. Management fee: 0.88%. APHRX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. APHRX has managed to produce a robust 10.84% over the last five years.
Columbia Seligman Communications and Information Z (CCIZX - Free Report) is an attractive fund with a five-year annualized return of 17.5% and an expense ratio of just 0.99%. With a much more diversified approach, CCIZX--part of the Sector - Tech mutual fund category--gives investors a way to own a stake in the notoriously risky tech sector.
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.