We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mutual Fund Misfires of the Market - January 22, 2020
Read MoreHide Full Article
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.
Pacific Advisors Small Cap I : 5.21% expense ratio and 0.75% management fee. PGISX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion. With a five year after-expenses return of -1.07%, you're mostly paying more in fees than returns.
AllianzGI Global Natural Resources P : 1.18% expense ratio, 1.15% management fee. APGPX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. This fund has an annual returns of -2.6% over the last five years. Another fund guilty of having investors pay more in fees than returns.
MainStay International Opportunities C (MYICX - Free Report) - 2.57% expense ratio, 1.1% management fee. MYICX 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. MYICX has generated annual returns of 1.15% over the last five years. Ouch!
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.
GMO Quality VI (GQLOX - Free Report) : Expense ratio: 0.39%. Management fee: 0.39%. GQLOX 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 12.72%.
Fidelity Strategic Advisers Growth Fund has an expense ratio of 0.13% and management fee of 0.37%. FSGFX 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 12.66% over the last five years, this is a well-diversified fund with a long track record of success.
MSIF Global Franchise I (MSFAX - Free Report) has an expense ratio of 0.91% and management fee of 0.76%. MSFAX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With annual returns of 12.51% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.
Image: Bigstock
Mutual Fund Misfires of the Market - January 22, 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.
Pacific Advisors Small Cap I : 5.21% expense ratio and 0.75% management fee. PGISX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion. With a five year after-expenses return of -1.07%, you're mostly paying more in fees than returns.
AllianzGI Global Natural Resources P : 1.18% expense ratio, 1.15% management fee. APGPX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. This fund has an annual returns of -2.6% over the last five years. Another fund guilty of having investors pay more in fees than returns.
MainStay International Opportunities C (MYICX - Free Report) - 2.57% expense ratio, 1.1% management fee. MYICX 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. MYICX has generated annual returns of 1.15% over the last five years. Ouch!
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.
GMO Quality VI (GQLOX - Free Report) : Expense ratio: 0.39%. Management fee: 0.39%. GQLOX 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 12.72%.
Fidelity Strategic Advisers Growth Fund has an expense ratio of 0.13% and management fee of 0.37%. FSGFX 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 12.66% over the last five years, this is a well-diversified fund with a long track record of success.
MSIF Global Franchise I (MSFAX - Free Report) has an expense ratio of 0.91% and management fee of 0.76%. MSFAX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With annual returns of 12.51% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.