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Are You Invested In These 3 Mutual Fund Misfires? - February 17, 2020
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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.
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.
Pacific Advisors Balanced A : 6.34% expense ratio and 0.75% management fee. PAABX 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-costs return of -2.45%, you're for the most part paying more in charges than returns.
AQR Style Premia Alternative N (QSPNX - Free Report) . Expense ratio: 1.75%. Management fee: 0.75%. Over the last 5 years, this fund has generated annual returns of -0.74%.
AB International Value C (ABICX - Free Report) - 2.22% expense ratio, 0.75% management fee. ABICX 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. ABICX has generated annual returns of 1.78% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
American Funds Growth Fund of America C (GFACX - Free Report) : Expense ratio: 1.41%. Management fee: 0.27%. GFACX 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. This fund has achieved five-year annual returns of an astounding 11.5%.
Harbor Large Cap Value Investor (HILVX - Free Report) has an expense ratio of 1.06% and management fee of 0.6%. HILVX is a part of the Large Cap Value category, and invests in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. Thanks to yearly returns of 11.79% over the last five years, HILVX is an effectively diversified fund with a long reputation of solidly positive performance.
JPMorgan Disciplined Equity I (JDESX - Free Report) is an attractive fund with a five-year annualized return of 10.01% and an expense ratio of just 0.35%. JDESX 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.
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
Are You Invested In These 3 Mutual Fund Misfires? - February 17, 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.
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.
Pacific Advisors Balanced A : 6.34% expense ratio and 0.75% management fee. PAABX 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-costs return of -2.45%, you're for the most part paying more in charges than returns.
AQR Style Premia Alternative N (QSPNX - Free Report) . Expense ratio: 1.75%. Management fee: 0.75%. Over the last 5 years, this fund has generated annual returns of -0.74%.
AB International Value C (ABICX - Free Report) - 2.22% expense ratio, 0.75% management fee. ABICX 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. ABICX has generated annual returns of 1.78% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
American Funds Growth Fund of America C (GFACX - Free Report) : Expense ratio: 1.41%. Management fee: 0.27%. GFACX 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. This fund has achieved five-year annual returns of an astounding 11.5%.
Harbor Large Cap Value Investor (HILVX - Free Report) has an expense ratio of 1.06% and management fee of 0.6%. HILVX is a part of the Large Cap Value category, and invests in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. Thanks to yearly returns of 11.79% over the last five years, HILVX is an effectively diversified fund with a long reputation of solidly positive performance.
JPMorgan Disciplined Equity I (JDESX - Free Report) is an attractive fund with a five-year annualized return of 10.01% and an expense ratio of just 0.35%. JDESX 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.
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.