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Avoid These 3 Mutual Fund Misfires - March 02, 2020

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If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess 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.

AB Unconstrained Bond A : 0.9% expense ratio and 0.5% management fee. AGSAX is a Diversified Bonds investment option; these funds give investors exposure to a variety of fixed income types that span across different issuers, maturities, and credit levels. With a five year after-costs return of -0.33%, you're for the most part paying more in charges than returns.

Alger International Growth C (ALGCX - Free Report) . Expense ratio: 2.23%. Management fee: 0.5%. Over the last 5 years, this fund has generated annual returns of 2.17%.

Ivy Natural Resources A (IGNAX - Free Report) : This fund has an expense ratio of 1.78% and management fee of 0.85%. IGNAX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With an annual average return of -4.9% 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 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.

T. Rowe Price Mid-Cap Growth Fund (RPMGX - Free Report) is a winner, with an expense ratio of just 0.74% and a five-year annualized return track record of 12.75%.

Brown Advisory Growth Equity Adviser (BAGAX - Free Report) is a stand out fund. BAGAX 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 14.52% and expense ratio of 1.1%, this diversified fund is an attractive buy with a strong history of performance.

PIMCO StocksPLUS C (PSPCX - Free Report) has an expense ratio of 1.4% and management fee of 0.65%. PSPCX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. With annual returns of 10.57% over the last five years, this fund is a well-diversified fund with a long track record of success.

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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