We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are You Invested In These 3 Mutual Fund Misfires? - February 06, 2020
Read MoreHide Full Article
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.
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.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
RBC Emerging Markets Small Cap Equity I : Expense ratio: 1.45%. Management fee: 1.25%. After expenses, the 5 year return is 0.93%, meaning your fees are far higher than the fund's returns.
Invesco Long/Short Equity R6 . Expense ratio: 1.13%. Management fee: 1.25%. Over the last 5 years, this fund has generated annual returns of 0.42%.
Timothy Plan Conservative Growth C (TCVCX - Free Report) - 1.83% expense ratio, 0.65% management fee. This fund has yielded yearly returns of 0.61% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
Baron Global Advantage Fund Retail (BGAFX - Free Report) : 1.15% expense ratio and 0.85% management fee. BGAFX 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 an annual return of 15.18% over the last five years, this fund is a winner.
Manning & Napier Disciplined Value S (MDFSX - Free Report) : Expense ratio: 0.83%. Management fee: 0.3%. MDFSX is a Large Cap Value mutual fund, which invests in stocks with a market cap of $10 billion of more, but whose share prices do not reflect their intrinsic value. MDFSX has managed to produce a robust 10.7% over the last five years.
MFS Mass Investors Growth Stock R5 (MIGNX - Free Report) has an expense ratio of 0.38% and management fee of 0.33%. MIGNX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. With annual returns of 14.38% 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
Are You Invested In These 3 Mutual Fund Misfires? - February 06, 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.
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.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
RBC Emerging Markets Small Cap Equity I : Expense ratio: 1.45%. Management fee: 1.25%. After expenses, the 5 year return is 0.93%, meaning your fees are far higher than the fund's returns.
Invesco Long/Short Equity R6 . Expense ratio: 1.13%. Management fee: 1.25%. Over the last 5 years, this fund has generated annual returns of 0.42%.
Timothy Plan Conservative Growth C (TCVCX - Free Report) - 1.83% expense ratio, 0.65% management fee. This fund has yielded yearly returns of 0.61% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
Baron Global Advantage Fund Retail (BGAFX - Free Report) : 1.15% expense ratio and 0.85% management fee. BGAFX 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 an annual return of 15.18% over the last five years, this fund is a winner.
Manning & Napier Disciplined Value S (MDFSX - Free Report) : Expense ratio: 0.83%. Management fee: 0.3%. MDFSX is a Large Cap Value mutual fund, which invests in stocks with a market cap of $10 billion of more, but whose share prices do not reflect their intrinsic value. MDFSX has managed to produce a robust 10.7% over the last five years.
MFS Mass Investors Growth Stock R5 (MIGNX - Free Report) has an expense ratio of 0.38% and management fee of 0.33%. MIGNX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. With annual returns of 14.38% 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.