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Avoid These 3 Mutual Fund Misfires - March 04, 2020
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You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
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.
Goldman Sachs N-11 Equity Fund A : 1.73% expense ratio and 1.13% management fee. GSYAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With a five year after-expenses return of -3.83%, you're mostly paying more in fees than returns.
Neuberger Berman Absolute Return Multi Manager I (NABIX - Free Report) . Expense ratio: 1.98%. Management fee: 1.13%. Over the last 5 years, this fund has generated annual returns of 0.76%.
Federated International Bond A (FTIIX - Free Report) : This fund has an expense ratio of 1.02% and management fee of 0.75%. FTIIX is an International Bond - Developed fund, and these funds funds focus on fixed income securities from developed nations apart from the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. With an annual average return of -0.12% 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.
AQR Large Cap Defensive Style I (AUEIX - Free Report) is a fund that has an expense ratio of 0.38%, and a management fee of 0.25%. AUEIX 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. With yearly returns of 13.39% over the last five years, this fund clearly wins.
Janus Henderson Research N (JRANX - Free Report) has an expense ratio of 0.54% and management fee of 0.53%. JRANX 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. With annual returns of 12.36% over the last five years, this is a well-diversified fund with a long track record of success.
Artisan Global Equity Investor (ARTHX - Free Report) : Expense ratio: 1.38%. Management fee: 1%. ARTHX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. ARTHX has produced a 10.55% 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.
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.
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Avoid These 3 Mutual Fund Misfires - March 04, 2020
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
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.
Goldman Sachs N-11 Equity Fund A : 1.73% expense ratio and 1.13% management fee. GSYAX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With a five year after-expenses return of -3.83%, you're mostly paying more in fees than returns.
Neuberger Berman Absolute Return Multi Manager I (NABIX - Free Report) . Expense ratio: 1.98%. Management fee: 1.13%. Over the last 5 years, this fund has generated annual returns of 0.76%.
Federated International Bond A (FTIIX - Free Report) : This fund has an expense ratio of 1.02% and management fee of 0.75%. FTIIX is an International Bond - Developed fund, and these funds funds focus on fixed income securities from developed nations apart from the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. With an annual average return of -0.12% 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.
AQR Large Cap Defensive Style I (AUEIX - Free Report) is a fund that has an expense ratio of 0.38%, and a management fee of 0.25%. AUEIX 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. With yearly returns of 13.39% over the last five years, this fund clearly wins.
Janus Henderson Research N (JRANX - Free Report) has an expense ratio of 0.54% and management fee of 0.53%. JRANX 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. With annual returns of 12.36% over the last five years, this is a well-diversified fund with a long track record of success.
Artisan Global Equity Investor (ARTHX - Free Report) : Expense ratio: 1.38%. Management fee: 1%. ARTHX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. ARTHX has produced a 10.55% 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.
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.