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Mutual Fund Misfires of the Market - January 28, 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 coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every day.
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.
Arrow DWA Balanced Fund C (DWATX - Free Report) : Expense ratio: 2.47%. Management fee: 1%. After expenses, the 5 year return is 1.15%, meaning your fees are far higher than the fund's returns.
Templeton Emerging Markets Small Cap A (TEMMX - Free Report) : 1.87% expense ratio, 1.35%. TEMMX is a Non US - Equity fund. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels. This fund has yearly returns of 1.47% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
EP Emerging Markets SmallerCompanies A (EPASX - Free Report) - 1.75% expense ratio, 1.08% management fee. This fund has yielded yearly returns of 1.31% in the course of the last five years. Too bad!
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.
MassMutual Select Small Cap Growth Equity Service Class (MSCYX - Free Report) : Expense ratio: 1.06%. Management fee: 0.8%. MSCYX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. This fund has achieved five-year annual returns of an astounding 10.77%.
MFS Mid-Cap Growth Fund R3 (OTCHX - Free Report) : Expense ratio: 1.09%. Management fee: 0.71%. OTCHX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. OTCHX has managed to produce a robust 13.68% over the last five years.
Fidelity Fund K (FFDKX - Free Report) is an attractive fund with a five-year annualized return of 11.26% and an expense ratio of just 0.4%. FFDKX 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.
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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Mutual Fund Misfires of the Market - January 28, 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 coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every day.
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.
Arrow DWA Balanced Fund C (DWATX - Free Report) : Expense ratio: 2.47%. Management fee: 1%. After expenses, the 5 year return is 1.15%, meaning your fees are far higher than the fund's returns.
Templeton Emerging Markets Small Cap A (TEMMX - Free Report) : 1.87% expense ratio, 1.35%. TEMMX is a Non US - Equity fund. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels. This fund has yearly returns of 1.47% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
EP Emerging Markets SmallerCompanies A (EPASX - Free Report) - 1.75% expense ratio, 1.08% management fee. This fund has yielded yearly returns of 1.31% in the course of the last five years. Too bad!
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.
MassMutual Select Small Cap Growth Equity Service Class (MSCYX - Free Report) : Expense ratio: 1.06%. Management fee: 0.8%. MSCYX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. This fund has achieved five-year annual returns of an astounding 10.77%.
MFS Mid-Cap Growth Fund R3 (OTCHX - Free Report) : Expense ratio: 1.09%. Management fee: 0.71%. OTCHX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. OTCHX has managed to produce a robust 13.68% over the last five years.
Fidelity Fund K (FFDKX - Free Report) is an attractive fund with a five-year annualized return of 11.26% and an expense ratio of just 0.4%. FFDKX 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.
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.