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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - January 30, 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.
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.
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.
Transamerica Small Cap Core A : 1.23% expense ratio and 0.83% management fee. SCCAX is a Small Cap Value mutual fund, investing in small companies with stock market valuation less than $2 billion. With a five year after-costs return of 1.09%, you're for the most part paying more in charges than returns.
Invesco Long/Short Equity Y . Expense ratio: 1.33%. Management fee: 0.83%. Over the last 5 years, this fund has generated annual returns of 0.33%.
Catalyst MLP & Infrastructure C (MLXCX - Free Report) : Expense ratio: 2.43%. Management fee: 1.25%. MLXCX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. With annual returns of just -7.6%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
MassMutual Select Equity Opportunities Service Class (MMFYX - Free Report) : 0.94% expense ratio and 0.69% management fee. MMFYX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. With an annual return of 10.62% over the last five years, this fund is a winner.
Victory RS Global Growth Y (RGGYX - Free Report) has an expense ratio of 0.6% and management fee of 0.8%. RGGYX 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 11.46% over the last five years, this is a well-diversified fund with a long track record of success.
MFS International Value Fund R4 (MINHX - Free Report) : Expense ratio: 0.73%. Management fee: 0.61%. MINHX 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. MINHX has produced a 10.13% over the last five years.
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 30, 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.
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.
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.
Transamerica Small Cap Core A : 1.23% expense ratio and 0.83% management fee. SCCAX is a Small Cap Value mutual fund, investing in small companies with stock market valuation less than $2 billion. With a five year after-costs return of 1.09%, you're for the most part paying more in charges than returns.
Invesco Long/Short Equity Y . Expense ratio: 1.33%. Management fee: 0.83%. Over the last 5 years, this fund has generated annual returns of 0.33%.
Catalyst MLP & Infrastructure C (MLXCX - Free Report) : Expense ratio: 2.43%. Management fee: 1.25%. MLXCX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. With annual returns of just -7.6%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
MassMutual Select Equity Opportunities Service Class (MMFYX - Free Report) : 0.94% expense ratio and 0.69% management fee. MMFYX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. With an annual return of 10.62% over the last five years, this fund is a winner.
Victory RS Global Growth Y (RGGYX - Free Report) has an expense ratio of 0.6% and management fee of 0.8%. RGGYX 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 11.46% over the last five years, this is a well-diversified fund with a long track record of success.
MFS International Value Fund R4 (MINHX - Free Report) : Expense ratio: 0.73%. Management fee: 0.61%. MINHX 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. MINHX has produced a 10.13% over the last five years.
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.