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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - January 13, 2020
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Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new advisor.
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.
Intrepid Capital Fund Institutional (ICMVX - Free Report) : This fund has an expense ratio of 1.15% and a management fee of 1%. 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. ICMVX 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. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
ClearBridge International Small Cap A : LCOAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. LCOAX offers an expense ratio of 1.42% and annual returns of -0.76% 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.
Leader Total Return Institutional (LCTIX - Free Report) - 1.88% expense ratio, 0.75% management fee. This fund has yielded yearly returns of 1.49% 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.
Great-West Multi Manager Large Cap Growth (MXLGX - Free Report) : 1% expense ratio and 0.64% management fee. MXLGX 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 an annual return of 12.99% over the last five years, this fund is a winner.
Victory RS Global Growth R (RGGKX - Free Report) has an expense ratio of 1.1% and management fee of 0.8%. RGGKX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With annual returns of 13.35% over the last five years, this is a well-diversified fund with a long track record of success.
Equinox EquityHedge US Strategy I has an expense ratio of 0.99% and management fee of 0.75%. EEHIX is a Long Short - Equity option. These funds' investment strategy consists of minimizing overall market exposure, while at the same time taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. With yearly returns of 10.72% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - January 13, 2020
Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new advisor.
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.
Intrepid Capital Fund Institutional (ICMVX - Free Report) : This fund has an expense ratio of 1.15% and a management fee of 1%. 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. ICMVX 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. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
ClearBridge International Small Cap A : LCOAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. LCOAX offers an expense ratio of 1.42% and annual returns of -0.76% 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.
Leader Total Return Institutional (LCTIX - Free Report) - 1.88% expense ratio, 0.75% management fee. This fund has yielded yearly returns of 1.49% 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.
Great-West Multi Manager Large Cap Growth (MXLGX - Free Report) : 1% expense ratio and 0.64% management fee. MXLGX 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 an annual return of 12.99% over the last five years, this fund is a winner.
Victory RS Global Growth R (RGGKX - Free Report) has an expense ratio of 1.1% and management fee of 0.8%. RGGKX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With annual returns of 13.35% over the last five years, this is a well-diversified fund with a long track record of success.
Equinox EquityHedge US Strategy I has an expense ratio of 0.99% and management fee of 0.75%. EEHIX is a Long Short - Equity option. These funds' investment strategy consists of minimizing overall market exposure, while at the same time taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. With yearly returns of 10.72% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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.