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Are You Invested In These 3 Mutual Fund Misfires? - February 26, 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.
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.
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.
Hartford Inflation Plus C (HIPCX - Free Report) : 1.6% expense ratio and 0.5% management fee. HIPCX is a Government - Bonds option, and holds securities issued by the U.S. federal government in their portfolios; these funds focus across the curve, meaning the yields and interest rate sensitivity will vary. With a five year after-costs return of 1.29%, you're for the most part paying more in charges than returns.
Columbia Disciplined Small Core C : 2.1% expense ratio, 0.85%. LSMCX is a Small Cap Value fund, and these funds are known for investing in companies with market caps under $2 billion. This fund has yearly returns of 1.78% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Ivy Municipals Bond B : This fund has an expense ratio of 1.75% and management fee of 0.51%. WMBBX 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. With an annual average return of 1.17% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
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.
JPMorgan Mid Cap Growth Fund R6 (JMGMX - Free Report) is a winner, with an expense ratio of just 0.73% and a five-year annualized return track record of 12.26%.
MFS Mass Investors Growth Stock R6 (MIGNX - Free Report) is a stand out fund. MIGNX 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 five-year annualized performance of 14.38% and expense ratio of 0.38%, this diversified fund is an attractive buy with a strong history of performance.
AQR Large Cap Defensive Style N (AUENX - Free Report) is an attractive fund with a five-year annualized return of 13.1% and an expense ratio of just 0.65%. AUENX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are 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.
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Are You Invested In These 3 Mutual Fund Misfires? - February 26, 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.
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.
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.
Hartford Inflation Plus C (HIPCX - Free Report) : 1.6% expense ratio and 0.5% management fee. HIPCX is a Government - Bonds option, and holds securities issued by the U.S. federal government in their portfolios; these funds focus across the curve, meaning the yields and interest rate sensitivity will vary. With a five year after-costs return of 1.29%, you're for the most part paying more in charges than returns.
Columbia Disciplined Small Core C : 2.1% expense ratio, 0.85%. LSMCX is a Small Cap Value fund, and these funds are known for investing in companies with market caps under $2 billion. This fund has yearly returns of 1.78% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Ivy Municipals Bond B : This fund has an expense ratio of 1.75% and management fee of 0.51%. WMBBX 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. With an annual average return of 1.17% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
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.
JPMorgan Mid Cap Growth Fund R6 (JMGMX - Free Report) is a winner, with an expense ratio of just 0.73% and a five-year annualized return track record of 12.26%.
MFS Mass Investors Growth Stock R6 (MIGNX - Free Report) is a stand out fund. MIGNX 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 five-year annualized performance of 14.38% and expense ratio of 0.38%, this diversified fund is an attractive buy with a strong history of performance.
AQR Large Cap Defensive Style N (AUENX - Free Report) is an attractive fund with a five-year annualized return of 13.1% and an expense ratio of just 0.65%. AUENX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are 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.