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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - March 02, 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 coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every 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.
Longleaf Partners Fund (LLPFX - Free Report) : 1.01% expense ratio and 0.78% management fee. LLPFX, an All Cap Value option, is a type of mutual fund that buys stakes in companies in all three valuation categories. With a five year after-costs return of 0.96%, you're for the most part paying more in charges than returns.
Ivy Natural Resources N (INRSX - Free Report) : 1.03% expense ratio, 0.85%. INRSX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. This fund has yearly returns of -3.15% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
AIG US Government Securities A : Expense ratio: 0.99%. Management fee: 0.65%. SGTAX is a Government Bond - Long fund choice, holding securities issued by the U.S. federal government. This fund category focuses on the long end of the curve, which can result in higher yields but greater sensitivity to interest rate fluctuations. With annual returns of just -0.25%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
MFS Mass Investors Growth Stock R3 (MIGHX - Free Report) is a winner, with an expense ratio of just 0.73% and a five-year annualized return track record of 13.98%.
Fidelity Fund K (FFDKX - Free Report) has an expense ratio of 0.4% and management fee of 0.33%. FFDKX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. Thanks to yearly returns of 11.26% over the last five years, FFDKX is an effectively diversified fund with a long reputation of solidly positive performance.
Vanguard Equity Income Investor (VEIPX - Free Report) : Expense ratio: 0.27%. Management fee: 0.26%. VEIPX 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. VEIPX has produced a 10.07% over the last five years.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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
Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - March 02, 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 coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every 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.
Longleaf Partners Fund (LLPFX - Free Report) : 1.01% expense ratio and 0.78% management fee. LLPFX, an All Cap Value option, is a type of mutual fund that buys stakes in companies in all three valuation categories. With a five year after-costs return of 0.96%, you're for the most part paying more in charges than returns.
Ivy Natural Resources N (INRSX - Free Report) : 1.03% expense ratio, 0.85%. INRSX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. This fund has yearly returns of -3.15% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
AIG US Government Securities A : Expense ratio: 0.99%. Management fee: 0.65%. SGTAX is a Government Bond - Long fund choice, holding securities issued by the U.S. federal government. This fund category focuses on the long end of the curve, which can result in higher yields but greater sensitivity to interest rate fluctuations. With annual returns of just -0.25%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
MFS Mass Investors Growth Stock R3 (MIGHX - Free Report) is a winner, with an expense ratio of just 0.73% and a five-year annualized return track record of 13.98%.
Fidelity Fund K (FFDKX - Free Report) has an expense ratio of 0.4% and management fee of 0.33%. FFDKX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. Thanks to yearly returns of 11.26% over the last five years, FFDKX is an effectively diversified fund with a long reputation of solidly positive performance.
Vanguard Equity Income Investor (VEIPX - Free Report) : Expense ratio: 0.27%. Management fee: 0.26%. VEIPX 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. VEIPX has produced a 10.07% over the last five years.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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.