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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - February 28, 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.
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.
MainGate MLP Fund I (IMLPX - Free Report) : This fund has an expense ratio of 1.45% and a management fee of 1.25%. 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. IMLPX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Hotchkis and Wiley Mid-Cap Value A (HWMAX - Free Report) : 1.25% expense ratio, 0.75%. HWMAX is a Mid Cap Value fund, which usually invests in companies with a stock market valuation between $2 billion and $10 billion. This fund has yearly returns of -0.49% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Transamerica Small Cap Core C - 2.01% expense ratio, 0.83% management fee. SCCCX is a Small Cap Value mutual fund, investing in small companies with stock market valuation less than $2 billion. SCCCX has generated annual returns of 1.54% over the last five years. Ouch!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
T. Rowe Price Institutional Large Cap Core (TPLGX - Free Report) : Expense ratio: 0.56%. Management fee: 0.55%. TPLGX 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 15.37%.
JPMorgan Small Cap Growth Fund R2 (JSGZX - Free Report) : Expense ratio: 1.49%. Management fee: 0.65%. JSGZX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. JSGZX has managed to produce a robust 13.92% over the last five years.
VALIC Company I Mid Cap Strategic Growth (VMSGX - Free Report) has an expense ratio of 0.81% and management fee of 0.69%. VMSGX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With yearly returns of 10.57% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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
3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - February 28, 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.
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.
MainGate MLP Fund I (IMLPX - Free Report) : This fund has an expense ratio of 1.45% and a management fee of 1.25%. 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. IMLPX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Hotchkis and Wiley Mid-Cap Value A (HWMAX - Free Report) : 1.25% expense ratio, 0.75%. HWMAX is a Mid Cap Value fund, which usually invests in companies with a stock market valuation between $2 billion and $10 billion. This fund has yearly returns of -0.49% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Transamerica Small Cap Core C - 2.01% expense ratio, 0.83% management fee. SCCCX is a Small Cap Value mutual fund, investing in small companies with stock market valuation less than $2 billion. SCCCX has generated annual returns of 1.54% over the last five years. Ouch!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
T. Rowe Price Institutional Large Cap Core (TPLGX - Free Report) : Expense ratio: 0.56%. Management fee: 0.55%. TPLGX 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 15.37%.
JPMorgan Small Cap Growth Fund R2 (JSGZX - Free Report) : Expense ratio: 1.49%. Management fee: 0.65%. JSGZX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. JSGZX has managed to produce a robust 13.92% over the last five years.
VALIC Company I Mid Cap Strategic Growth (VMSGX - Free Report) has an expense ratio of 0.81% and management fee of 0.69%. VMSGX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With yearly returns of 10.57% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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.