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3 Mutual Fund Misfires to Avoid - February 05, 2020
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If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your 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.
CM Advisors Small Cap Value I : 1.25% expense ratio and 0.85% management fee. CMOVX is a Small Cap Value fund, and these funds are known for investing in companies with market caps under $2 billion. With a five year after-costs return of -1.12%, you're for the most part paying more in charges than returns.
Guidemark Opportunity Fixed Income Service Class : 1.55% expense ratio, 0.7% management fee. GMIFX is classified as an International Bond - Developed fund; these funds offer investors geographic diversification by focusing on fixed income securities from developed nations besides the United States. Top holdings include assets from countries like Japan, Germany, the UK, France, and Australia. This fund has an annual returns of 1.2% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Guinness Atkinson Renminbi Yuan & Bond (GARBX - Free Report) - 0.91% expense ratio, 0.55% management fee. This fund has yielded yearly returns of 0.6% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
American Funds Washington Mutual Investors F2 (WMFFX - Free Report) : 0.38% expense ratio and 0.23% management fee. WMFFX is a part of the Large Cap Value category, and invests in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. With an annual return of 10.81% over the last five years, this fund is a winner.
Boston Trust Mid Cap Fund (BTMFX - Free Report) has an expense ratio of 1% and management fee of 0.75%. BTMFX is a Mid Cap Blend mutual fund, and usually features a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on mid cap companies. With annual returns of 10.76% over the last five years, this is a well-diversified fund with a long track record of success.
Fidelity Series Allocation Sector Equity (FSAEX - Free Report) has an expense ratio of 0.06% and management fee of 0%. FSAEX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With annual returns of 10.84% 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
3 Mutual Fund Misfires to Avoid - February 05, 2020
If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your 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.
CM Advisors Small Cap Value I : 1.25% expense ratio and 0.85% management fee. CMOVX is a Small Cap Value fund, and these funds are known for investing in companies with market caps under $2 billion. With a five year after-costs return of -1.12%, you're for the most part paying more in charges than returns.
Guidemark Opportunity Fixed Income Service Class : 1.55% expense ratio, 0.7% management fee. GMIFX is classified as an International Bond - Developed fund; these funds offer investors geographic diversification by focusing on fixed income securities from developed nations besides the United States. Top holdings include assets from countries like Japan, Germany, the UK, France, and Australia. This fund has an annual returns of 1.2% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Guinness Atkinson Renminbi Yuan & Bond (GARBX - Free Report) - 0.91% expense ratio, 0.55% management fee. This fund has yielded yearly returns of 0.6% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
American Funds Washington Mutual Investors F2 (WMFFX - Free Report) : 0.38% expense ratio and 0.23% management fee. WMFFX is a part of the Large Cap Value category, and invests in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. With an annual return of 10.81% over the last five years, this fund is a winner.
Boston Trust Mid Cap Fund (BTMFX - Free Report) has an expense ratio of 1% and management fee of 0.75%. BTMFX is a Mid Cap Blend mutual fund, and usually features a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on mid cap companies. With annual returns of 10.76% over the last five years, this is a well-diversified fund with a long track record of success.
Fidelity Series Allocation Sector Equity (FSAEX - Free Report) has an expense ratio of 0.06% and management fee of 0%. FSAEX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With annual returns of 10.84% 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.