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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - February 03, 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.
Catalyst Hedged Futures Strategy A : This fund has an expense ratio of 2.33% and a management fee of 1.75%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. HFXAX is a Long Short - Equity option. These funds' investment strategy consists of minimizing overall market exposure, while at the same time taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Eagle MLP Strategy C (EGLCX - Free Report) : 2.42% expense ratio, 1.25%. EGLCX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. This fund has yearly returns of -9.54% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Leader Short-Term Bond Fund A - 1.66% expense ratio, 0.75% management fee. This fund has yielded yearly returns of -0.24% 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.
BlackRock Advantage Large Cap Growth R (BMCRX - Free Report) is a winner, with an expense ratio of just 1.12% and a five-year annualized return track record of 11.83%.
Hartford Stock HLS IA (HSTAX - Free Report) is a stand out fund. HSTAX 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 five-year annualized performance of 11.63% and expense ratio of 0.52%, this diversified fund is an attractive buy with a strong history of performance.
Franklin DynaTech Adviser (FDYZX - Free Report) : Expense ratio: 0.58%. Management fee: 0.46%. FDYZX is part of the Sector - Tech mutual fund category that invests in technology and lets investors own a stake in a notoriously volatile sector, but with a much more diversified approach. FDYZX has produced a 16.78% over the last five years.
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
3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - February 03, 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.
Catalyst Hedged Futures Strategy A : This fund has an expense ratio of 2.33% and a management fee of 1.75%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. HFXAX is a Long Short - Equity option. These funds' investment strategy consists of minimizing overall market exposure, while at the same time taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Eagle MLP Strategy C (EGLCX - Free Report) : 2.42% expense ratio, 1.25%. EGLCX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. This fund has yearly returns of -9.54% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Leader Short-Term Bond Fund A - 1.66% expense ratio, 0.75% management fee. This fund has yielded yearly returns of -0.24% 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.
BlackRock Advantage Large Cap Growth R (BMCRX - Free Report) is a winner, with an expense ratio of just 1.12% and a five-year annualized return track record of 11.83%.
Hartford Stock HLS IA (HSTAX - Free Report) is a stand out fund. HSTAX 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 five-year annualized performance of 11.63% and expense ratio of 0.52%, this diversified fund is an attractive buy with a strong history of performance.
Franklin DynaTech Adviser (FDYZX - Free Report) : Expense ratio: 0.58%. Management fee: 0.46%. FDYZX is part of the Sector - Tech mutual fund category that invests in technology and lets investors own a stake in a notoriously volatile sector, but with a much more diversified approach. FDYZX has produced a 16.78% over the last five years.
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.