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Mutual Fund Misfires of the Market - February 14, 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.
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.
AQR Multi Strategy Alternative I : 1.96% expense ratio and 1.75% management fee. ASAIX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. With a five year after-expenses return of -2.66%, you're mostly paying more in fees than returns.
Goldman Sachs N-11 Equity Fund A . Expense ratio: 1.73%. Management fee: 1.75%. Over the last 5 years, this fund has generated annual returns of -3.83%.
Leader Total Return C - 2.96% expense ratio, 0.75% management fee. This fund has yielded yearly returns of 0.75% 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.
MSIF Global Quality Portfolio IS (MGQSX - Free Report) is a winner, with an expense ratio of just 0.84% and a five-year annualized return track record of 12.04%.
Franklin Small Cap Growth R6 (FSMLX - Free Report) has an expense ratio of 0.64% and management fee of 0.62%. FSMLX 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 10.58% over the last five years, FSMLX is an effectively diversified fund with a long reputation of solidly positive performance.
Fidelity Advisor Stock Select Allocation Cap Z (FZAPX - Free Report) has an expense ratio of 0.56% and management fee of 0.49%. FZAPX 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 yearly returns of 10.75% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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.
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Mutual Fund Misfires of the Market - February 14, 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.
AQR Multi Strategy Alternative I : 1.96% expense ratio and 1.75% management fee. ASAIX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. With a five year after-expenses return of -2.66%, you're mostly paying more in fees than returns.
Goldman Sachs N-11 Equity Fund A . Expense ratio: 1.73%. Management fee: 1.75%. Over the last 5 years, this fund has generated annual returns of -3.83%.
Leader Total Return C - 2.96% expense ratio, 0.75% management fee. This fund has yielded yearly returns of 0.75% 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.
MSIF Global Quality Portfolio IS (MGQSX - Free Report) is a winner, with an expense ratio of just 0.84% and a five-year annualized return track record of 12.04%.
Franklin Small Cap Growth R6 (FSMLX - Free Report) has an expense ratio of 0.64% and management fee of 0.62%. FSMLX 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 10.58% over the last five years, FSMLX is an effectively diversified fund with a long reputation of solidly positive performance.
Fidelity Advisor Stock Select Allocation Cap Z (FZAPX - Free Report) has an expense ratio of 0.56% and management fee of 0.49%. FZAPX 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 yearly returns of 10.75% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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.