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Mutual Fund Misfires of the Market - February 27, 2020

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Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new advisor.

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.

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.

AllianzGI Global Natural Resources C : This fund has an expense ratio of 2.18% and a management fee of 1.15%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. ARMCX 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. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.

Ivy Advantus Bond B (IBOBX - Free Report) . Expense ratio: 1.97%. Management fee: 1.15%. Over the last 5 years, this fund has generated annual returns of 1.95%.

HSBC Frontier Markets A : This fund has an expense ratio of 1.85% and management fee of 1.25%. HSFAX 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. With an annual average return of 0.56% 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.

Hartford Core Equity Y (HGIYX - Free Report) is a fund that has an expense ratio of 0.43%, and a management fee of 0.35%. HGIYX 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. With yearly returns of 12.71% over the last five years, this fund clearly wins.

T. Rowe Price Blue Chip Growth Adviser (PABGX - Free Report) has an expense ratio of 0.96% and management fee of 0.56%. PABGX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. Thanks to yearly returns of 14.92% over the last five years, PABGX is an effectively diversified fund with a long reputation of solidly positive performance.

MassMutual Select Mid Cap Growth R3 (MEFNX - Free Report) : Expense ratio: 1.41%. Management fee: 0.69%. MEFNX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. MEFNX has produced a 12.3% over the last five years.

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.

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