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Avoid These 3 Mutual Fund Misfires - February 11, 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.
Gabelli Focus Five Fund A (GWSAX - Free Report) : 1.71% expense ratio and 1% management fee. GWSAX 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 -1.55%, you're for the most part paying more in charges than returns.
Timothy Plan Fixed-Income C (TFICX - Free Report) : 1.87% expense ratio, 0.6%. TFICX is part of the Investment Grade Bond - Intermediate fund group. These mutual funds focus on the middle part of the curve, generally with bonds that usually mature in more than three years but less than 15 years. This fund has yearly returns of 0.96% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Parametric Emerging Markets C (ECEMX - Free Report) - 2.18% expense ratio, 0.95% management fee. ECEMX 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. ECEMX has generated annual returns of 2% over the last five years. Ouch!
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.
MassMutual Select Equity Opportunities Admiral (MMFVX - Free Report) : 1.04% expense ratio and 0.69% management fee. MMFVX 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. With an annual return of 10.51% over the last five years, this fund is a winner.
JPMorgan Growth Advantage I (JGASX - Free Report) : Expense ratio: 0.89%. Management fee: 0.55%. JGASX 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. JGASX has managed to produce a robust 14.91% over the last five years.
Nicholas Limited Edition N (NNLEX - Free Report) has an expense ratio of 1.15% and management fee of 0.75%. NNLEX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities. With yearly returns of 10.43% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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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Avoid These 3 Mutual Fund Misfires - February 11, 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.
Gabelli Focus Five Fund A (GWSAX - Free Report) : 1.71% expense ratio and 1% management fee. GWSAX 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 -1.55%, you're for the most part paying more in charges than returns.
Timothy Plan Fixed-Income C (TFICX - Free Report) : 1.87% expense ratio, 0.6%. TFICX is part of the Investment Grade Bond - Intermediate fund group. These mutual funds focus on the middle part of the curve, generally with bonds that usually mature in more than three years but less than 15 years. This fund has yearly returns of 0.96% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Parametric Emerging Markets C (ECEMX - Free Report) - 2.18% expense ratio, 0.95% management fee. ECEMX 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. ECEMX has generated annual returns of 2% over the last five years. Ouch!
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.
MassMutual Select Equity Opportunities Admiral (MMFVX - Free Report) : 1.04% expense ratio and 0.69% management fee. MMFVX 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. With an annual return of 10.51% over the last five years, this fund is a winner.
JPMorgan Growth Advantage I (JGASX - Free Report) : Expense ratio: 0.89%. Management fee: 0.55%. JGASX 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. JGASX has managed to produce a robust 14.91% over the last five years.
Nicholas Limited Edition N (NNLEX - Free Report) has an expense ratio of 1.15% and management fee of 0.75%. NNLEX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities. With yearly returns of 10.43% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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.