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Are You Invested In These 3 Mutual Fund Misfires? - March 03, 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.
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.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Neuberger Berman Absolute Return Multi Manager A (NABAX - Free Report) : 2.33% expense ratio and 1.96% management fee. NABAX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. With a five year after-expenses return of -0.72%, you're mostly paying more in fees than returns.
American Funds ST Bond Fund of America R1 (RAMAX - Free Report) . Expense ratio: 1.45%. Management fee: 1.96%. Over the last 5 years, this fund has generated annual returns of -0.07%.
American Century International Value Investor (ACEVX - Free Report) - 1.34% expense ratio, 1.28% management fee. ACEVX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. ACEVX has generated annual returns of 1.33% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
PIMCO StocksPlus P (PSKPX - Free Report) : Expense ratio: 0.6%. Management fee: 0.6%. PSKPX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. This fund has achieved five-year annual returns of an astounding 11.44%.
GMO Quality VI (GQLOX - Free Report) is a stand out fund. GQLOX 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 five-year annualized performance of 12.72% and expense ratio of 0.39%, this diversified fund is an attractive buy with a strong history of performance.
JPMorgan Large Cap Growth R2 (JLGZX - Free Report) : Expense ratio: 1.18%. Management fee: 0.45%. JLGZX 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. JLGZX has produced a 14.68% over the last five years.
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
Are You Invested In These 3 Mutual Fund Misfires? - March 03, 2020
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.
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.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Neuberger Berman Absolute Return Multi Manager A (NABAX - Free Report) : 2.33% expense ratio and 1.96% management fee. NABAX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. With a five year after-expenses return of -0.72%, you're mostly paying more in fees than returns.
American Funds ST Bond Fund of America R1 (RAMAX - Free Report) . Expense ratio: 1.45%. Management fee: 1.96%. Over the last 5 years, this fund has generated annual returns of -0.07%.
American Century International Value Investor (ACEVX - Free Report) - 1.34% expense ratio, 1.28% management fee. ACEVX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. ACEVX has generated annual returns of 1.33% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
PIMCO StocksPlus P (PSKPX - Free Report) : Expense ratio: 0.6%. Management fee: 0.6%. PSKPX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. This fund has achieved five-year annual returns of an astounding 11.44%.
GMO Quality VI (GQLOX - Free Report) is a stand out fund. GQLOX 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 five-year annualized performance of 12.72% and expense ratio of 0.39%, this diversified fund is an attractive buy with a strong history of performance.
JPMorgan Large Cap Growth R2 (JLGZX - Free Report) : Expense ratio: 1.18%. Management fee: 0.45%. JLGZX 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. JLGZX has produced a 14.68% over the last five years.
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.