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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - February 17, 2020
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You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
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.
Pacific Advisors Mid Cap Value C : 7.4% expense ratio and 1% management fee. PMVCX is a Mid Cap Blend mutual fund that typically features a portfolio filled with stocks of various sizes and styles; it allows for a diversification strategy focusing on companies with market caps between $2 billion and $10 billion. With a five year after-expenses return of -3.6%, you're mostly paying more in fees than returns.
AQR Style Premia Alternative I (QSPIX - Free Report) . Expense ratio: 1.48%. Management fee: 1%. Over the last 5 years, this fund has generated annual returns of -0.48%.
BlackRock Eurofund R (MREFX - Free Report) - 2.01% expense ratio, 0.75% management fee. This fund has yielded yearly returns of 1.85% in the course of the last five years. Too bad!
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.
RBC Global Opportunities I (RGOIX - Free Report) is a fund that has an expense ratio of 0.86%, and a management fee of 0.76%. RGOIX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With yearly returns of 12.14% over the last five years, this fund clearly wins.
MassMutual Select Mid Cap Growth R4 (MEFFX - Free Report) has an expense ratio of 1.16% and management fee of 0.69%. MEFFX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. Thanks to yearly returns of 11.93% over the last five years, MEFFX is an effectively diversified fund with a long reputation of solidly positive performance.
Vanguard Growth & Income Admiral (VGIAX - Free Report) is an attractive fund with a five-year annualized return of 11.32% and an expense ratio of just 0.23%. VGIAX 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
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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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - February 17, 2020
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
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.
Pacific Advisors Mid Cap Value C : 7.4% expense ratio and 1% management fee. PMVCX is a Mid Cap Blend mutual fund that typically features a portfolio filled with stocks of various sizes and styles; it allows for a diversification strategy focusing on companies with market caps between $2 billion and $10 billion. With a five year after-expenses return of -3.6%, you're mostly paying more in fees than returns.
AQR Style Premia Alternative I (QSPIX - Free Report) . Expense ratio: 1.48%. Management fee: 1%. Over the last 5 years, this fund has generated annual returns of -0.48%.
BlackRock Eurofund R (MREFX - Free Report) - 2.01% expense ratio, 0.75% management fee. This fund has yielded yearly returns of 1.85% in the course of the last five years. Too bad!
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.
RBC Global Opportunities I (RGOIX - Free Report) is a fund that has an expense ratio of 0.86%, and a management fee of 0.76%. RGOIX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With yearly returns of 12.14% over the last five years, this fund clearly wins.
MassMutual Select Mid Cap Growth R4 (MEFFX - Free Report) has an expense ratio of 1.16% and management fee of 0.69%. MEFFX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. Thanks to yearly returns of 11.93% over the last five years, MEFFX is an effectively diversified fund with a long reputation of solidly positive performance.
Vanguard Growth & Income Admiral (VGIAX - Free Report) is an attractive fund with a five-year annualized return of 11.32% and an expense ratio of just 0.23%. VGIAX 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
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.