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 12, 2020
Read MoreHide Full Article
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.
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.
Federated Fund for US Government Security C (FUSCX - Free Report) : 1.72% expense ratio and 0.41% management fee. FUSCX is a Government Mortgage - Intermediate fund, focusing on the mortgage-backed securities (MBS) market and securities with at least three years to maturity but less than 10. With a five year after-costs return of 1.15%, you're for the most part paying more in charges than returns.
Eaton Vance Natural Limited Maturity Municipals C (EZNAX - Free Report) : 1.42% expense ratio, 0.4%. EZNAX is a Muni - Bonds mutual fund; these funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. This fund has yearly returns of 1.41% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Clearbridge International Value A (SBIEX - Free Report) : Expense ratio: 1.25%. Management fee: 0.75%. SBIEX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With annual returns of just 0.43%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
Janus Henderson Research A (JRAAX - Free Report) is a winner, with an expense ratio of just 0.89% and a five-year annualized return track record of 10.73%.
AMG Frontier Small Cap Growth Z (MSSYX - Free Report) has an expense ratio of 0.9% and management fee of 0.7%. MSSYX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With annual returns of 10.34% over the last five years, this is a well-diversified fund with a long track record of success.
Baron Partners Fund Institutional (BPTIX - Free Report) is an attractive fund with a five-year annualized return of 13.9% and an expense ratio of just 1.07%. BPTIX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers.
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 12, 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.
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.
Federated Fund for US Government Security C (FUSCX - Free Report) : 1.72% expense ratio and 0.41% management fee. FUSCX is a Government Mortgage - Intermediate fund, focusing on the mortgage-backed securities (MBS) market and securities with at least three years to maturity but less than 10. With a five year after-costs return of 1.15%, you're for the most part paying more in charges than returns.
Eaton Vance Natural Limited Maturity Municipals C (EZNAX - Free Report) : 1.42% expense ratio, 0.4%. EZNAX is a Muni - Bonds mutual fund; these funds invest in debt securities issued by states and local municipalities, which are typically used to pay for infrastructure construction, schools, and other government functions. This fund has yearly returns of 1.41% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Clearbridge International Value A (SBIEX - Free Report) : Expense ratio: 1.25%. Management fee: 0.75%. SBIEX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With annual returns of just 0.43%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
Janus Henderson Research A (JRAAX - Free Report) is a winner, with an expense ratio of just 0.89% and a five-year annualized return track record of 10.73%.
AMG Frontier Small Cap Growth Z (MSSYX - Free Report) has an expense ratio of 0.9% and management fee of 0.7%. MSSYX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With annual returns of 10.34% over the last five years, this is a well-diversified fund with a long track record of success.
Baron Partners Fund Institutional (BPTIX - Free Report) is an attractive fund with a five-year annualized return of 13.9% and an expense ratio of just 1.07%. BPTIX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers.
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.