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Avoid These 3 Mutual Fund Misfires - January 17, 2020
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If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your advisor.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
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.
Iron Horse Fund I : Expense ratio: 1.7%. Management fee: 1.25%. After expenses, the 5 year return is 1.6%, meaning your fees are far higher than the fund's returns.
First Investor International Opportunities Bond Institutional . Expense ratio: 0.91%. Management fee: 1.25%. Over the last 5 years, this fund has generated annual returns of -0.31%.
Eagle MLP Strategy A (EGLAX - Free Report) - 1.67% expense ratio, 1.25% management fee. EGLAX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. EGLAX has generated annual returns of -9.87% over the last five years. Ouch!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
DFA US Sustainability Core I (DFSIX - Free Report) : Expense ratio: 0.25%. Management fee: 0.23%. DFSIX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. This fund has achieved five-year annual returns of an astounding 11.04%.
JPMorgan Intrepid Growth Fund R2 (JIGZX - Free Report) is a stand out fund. JIGZX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. With five-year annualized performance of 11.59% and expense ratio of 1.09%, this diversified fund is an attractive buy with a strong history of performance.
DreyfusGlobal Stock I (DGLRX - Free Report) has an expense ratio of 0.99% and management fee of 0.85%. DGLRX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. With yearly returns of 10.97% 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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Avoid These 3 Mutual Fund Misfires - January 17, 2020
If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your advisor.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
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.
Iron Horse Fund I : Expense ratio: 1.7%. Management fee: 1.25%. After expenses, the 5 year return is 1.6%, meaning your fees are far higher than the fund's returns.
First Investor International Opportunities Bond Institutional . Expense ratio: 0.91%. Management fee: 1.25%. Over the last 5 years, this fund has generated annual returns of -0.31%.
Eagle MLP Strategy A (EGLAX - Free Report) - 1.67% expense ratio, 1.25% management fee. EGLAX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. EGLAX has generated annual returns of -9.87% over the last five years. Ouch!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
DFA US Sustainability Core I (DFSIX - Free Report) : Expense ratio: 0.25%. Management fee: 0.23%. DFSIX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. This fund has achieved five-year annual returns of an astounding 11.04%.
JPMorgan Intrepid Growth Fund R2 (JIGZX - Free Report) is a stand out fund. JIGZX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. With five-year annualized performance of 11.59% and expense ratio of 1.09%, this diversified fund is an attractive buy with a strong history of performance.
DreyfusGlobal Stock I (DGLRX - Free Report) has an expense ratio of 0.99% and management fee of 0.85%. DGLRX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. With yearly returns of 10.97% 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.