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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - February 13, 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.
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.
Touchstone Ultra Short Duration Fixed Income A (TSDAX - Free Report) : 0.69% expense ratio and 0.25% management fee. TSDAX is a Government Bond - Short fund, and these funds hold securities issued by the U.S. federal government. This category focuses on the short end of the curve, and are seen as extremely low risk securities from a default perspective. With a five year after-costs return of -0.59%, you're for the most part paying more in charges than returns.
Franklin Mutual International A : 1.22% expense ratio, 0.88%. FMIAX 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. This fund has yearly returns of 0.88% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Neuberger Berman Absolute Return Multi Manager A (NABAX - Free Report) - 2.34% expense ratio, 1.96% management fee. This fund has yielded yearly returns of -0.72% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
TIAA-CREF Social Choice Equity Retirement (TRSCX - Free Report) is a winner, with an expense ratio of just 0.42% and a five-year annualized return track record of 10.43%.
MassMutual Select Small Cap Growth Equity I (MSGZX - Free Report) has an expense ratio of 0.86% and management fee of 0.8%. MSGZX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. Thanks to yearly returns of 10.98% over the last five years, MSGZX is an effectively diversified fund with a long reputation of solidly positive performance.
MSIF Global Opportunity Portfolio A (MGGPX - Free Report) has an expense ratio of 1.23% and management fee of 0.74%. MGGPX 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 annual returns of 16.39% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
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
Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - February 13, 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.
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.
Touchstone Ultra Short Duration Fixed Income A (TSDAX - Free Report) : 0.69% expense ratio and 0.25% management fee. TSDAX is a Government Bond - Short fund, and these funds hold securities issued by the U.S. federal government. This category focuses on the short end of the curve, and are seen as extremely low risk securities from a default perspective. With a five year after-costs return of -0.59%, you're for the most part paying more in charges than returns.
Franklin Mutual International A : 1.22% expense ratio, 0.88%. FMIAX 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. This fund has yearly returns of 0.88% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Neuberger Berman Absolute Return Multi Manager A (NABAX - Free Report) - 2.34% expense ratio, 1.96% management fee. This fund has yielded yearly returns of -0.72% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
TIAA-CREF Social Choice Equity Retirement (TRSCX - Free Report) is a winner, with an expense ratio of just 0.42% and a five-year annualized return track record of 10.43%.
MassMutual Select Small Cap Growth Equity I (MSGZX - Free Report) has an expense ratio of 0.86% and management fee of 0.8%. MSGZX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. Thanks to yearly returns of 10.98% over the last five years, MSGZX is an effectively diversified fund with a long reputation of solidly positive performance.
MSIF Global Opportunity Portfolio A (MGGPX - Free Report) has an expense ratio of 1.23% and management fee of 0.74%. MGGPX 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 annual returns of 16.39% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
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.