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3 Mutual Fund Misfires to Avoid - February 06, 2020
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If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your advisor.
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.
Touchstone Ultra Short Duration Fixed Income I (TSDIX - Free Report) : 0.39% expense ratio and 0.25% management fee. TSDIX is part of the Government Bond - Short fund category. Often seen as risk-free assets, these funds hold securities issued by the U.S. federal government and they focus on the short end of the curve. With a five year after-expenses return of -0.21%, you're mostly paying more in fees than returns.
Ascendant Deep Value Convertibles I : 2.15% expense ratio, 1.15%. AEQIX 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. This fund has yearly returns of 0.8% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Invesco Long/Short Equity C - 2.33% expense ratio, 0.8% management fee. This fund has yielded yearly returns of -0.66% 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.
AQR Large Cap Defensive Style N (AUENX - Free Report) : Expense ratio: 0.65%. Management fee: 0.25%. AUENX 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 13.1%.
William Blair International Leaders Institutional (WILJX - Free Report) is a stand out fund. WILJX 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. With five-year annualized performance of 10.09% and expense ratio of 0.91%, this diversified fund is an attractive buy with a strong history of performance.
Mar Vista Strategic Growth Institutional has an expense ratio of 0.7% and management fee of 0.6%. MVSGX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. With annual returns of 11.52% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
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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3 Mutual Fund Misfires to Avoid - February 06, 2020
If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your advisor.
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.
Touchstone Ultra Short Duration Fixed Income I (TSDIX - Free Report) : 0.39% expense ratio and 0.25% management fee. TSDIX is part of the Government Bond - Short fund category. Often seen as risk-free assets, these funds hold securities issued by the U.S. federal government and they focus on the short end of the curve. With a five year after-expenses return of -0.21%, you're mostly paying more in fees than returns.
Ascendant Deep Value Convertibles I : 2.15% expense ratio, 1.15%. AEQIX 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. This fund has yearly returns of 0.8% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Invesco Long/Short Equity C - 2.33% expense ratio, 0.8% management fee. This fund has yielded yearly returns of -0.66% 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.
AQR Large Cap Defensive Style N (AUENX - Free Report) : Expense ratio: 0.65%. Management fee: 0.25%. AUENX 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 13.1%.
William Blair International Leaders Institutional (WILJX - Free Report) is a stand out fund. WILJX 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. With five-year annualized performance of 10.09% and expense ratio of 0.91%, this diversified fund is an attractive buy with a strong history of performance.
Mar Vista Strategic Growth Institutional has an expense ratio of 0.7% and management fee of 0.6%. MVSGX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. With annual returns of 11.52% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
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.