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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - January 21, 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.
Below, you'll read about some of the funds included in our current list of "Mutual Fund Misfires of the Market." And if by chance you're invested in any of these misfires, we'll help and review some of our highest Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
The Texas I (BIGTX - Free Report) : 1.64% expense ratio and 1.45% management fee. BIGTX is a Mid Cap Blend mutual fund. These funds usually seek a stock portfolio of various size and style, which allows for diversification when the focus is on companies with a market cap in the range of $2 billion to $10 billion. With a five year after-expenses return of 1.14%, you're mostly paying more in fees than returns.
Harding Loevner Front Emerging Markets Investor (HLMOX - Free Report) : 2% expense ratio, 1.35% management fee. HLMOX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has an annual returns of -1.02% over the last five years. Another fund guilty of having investors pay more in fees than returns.
PSI Stategic Growth Fund A - 1.9% expense ratio, 1% management fee. This fund has yielded yearly returns of 0.62% 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.
Johnson Enhanced Return Fund (JENHX - Free Report) : Expense ratio: 0.3%. Management fee: 0.35%. JENHX is an Allocation Balanced mutual fund. Allocation Balanced funds look to invest across asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation. This fund has achieved five-year annual returns of an astounding 11.78%.
Diamond Hill Large Cap Fund Y (DHLYX - Free Report) has an expense ratio of 0.55% and management fee of 0.5%. DHLYX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. With annual returns of 11.55% over the last five years, this is a well-diversified fund with a long track record of success.
Principal SmCap Gr I R6 (PCSMX - Free Report) has an expense ratio of 0.99% and management fee of 1.08%. PCSMX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With annual returns of 12.04% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
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 21, 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.
Below, you'll read about some of the funds included in our current list of "Mutual Fund Misfires of the Market." And if by chance you're invested in any of these misfires, we'll help and review some of our highest Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
The Texas I (BIGTX - Free Report) : 1.64% expense ratio and 1.45% management fee. BIGTX is a Mid Cap Blend mutual fund. These funds usually seek a stock portfolio of various size and style, which allows for diversification when the focus is on companies with a market cap in the range of $2 billion to $10 billion. With a five year after-expenses return of 1.14%, you're mostly paying more in fees than returns.
Harding Loevner Front Emerging Markets Investor (HLMOX - Free Report) : 2% expense ratio, 1.35% management fee. HLMOX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has an annual returns of -1.02% over the last five years. Another fund guilty of having investors pay more in fees than returns.
PSI Stategic Growth Fund A - 1.9% expense ratio, 1% management fee. This fund has yielded yearly returns of 0.62% 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.
Johnson Enhanced Return Fund (JENHX - Free Report) : Expense ratio: 0.3%. Management fee: 0.35%. JENHX is an Allocation Balanced mutual fund. Allocation Balanced funds look to invest across asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation. This fund has achieved five-year annual returns of an astounding 11.78%.
Diamond Hill Large Cap Fund Y (DHLYX - Free Report) has an expense ratio of 0.55% and management fee of 0.5%. DHLYX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. With annual returns of 11.55% over the last five years, this is a well-diversified fund with a long track record of success.
Principal SmCap Gr I R6 (PCSMX - Free Report) has an expense ratio of 0.99% and management fee of 1.08%. PCSMX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With annual returns of 12.04% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
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.