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Mutual Fund Misfires of the Market - March 23, 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.
Invesco Long/Short Equity C : 2.33% expense ratio and 0.8% management fee. LSQCX is a Long Short - Equity mutual fund, which look at taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline, but overall, hope to minimize their market exposure. With a five year after-costs return of -0.66%, you're for the most part paying more in charges than returns.
First Investor International Opportunities Bond Institutional . Expense ratio: 0.91%. Management fee: 0.8%. Over the last 5 years, this fund has generated annual returns of -0.31%.
AQR Equity Market Neutral I (QMNIX - Free Report) - 1.27% expense ratio, 1.1% management fee. QMNIX is a Market Neutral - Equity mutual fund. Their portfolios typically hold 50% of their securities in a long position, and 50% in a short position. QMNIX has generated annual returns of 0.62% over the last five years. Ouch!
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 International Value Fund R6 (MINJX - Free Report) is a winner, with an expense ratio of just 0.62% and a five-year annualized return track record of 10.24%.
AQR Large Cap Defensive Style N (AUENX - Free Report) is a stand out fund. AUENX 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 13.1% and expense ratio of 0.65%, this diversified fund is an attractive buy with a strong history of performance.
Principal Large Cap Growth I A (PLGAX - Free Report) : Expense ratio: 1%. Management fee: 0.6%. PLGAX 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. PLGAX has produced a 10.91% 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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Mutual Fund Misfires of the Market - March 23, 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.
Invesco Long/Short Equity C : 2.33% expense ratio and 0.8% management fee. LSQCX is a Long Short - Equity mutual fund, which look at taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline, but overall, hope to minimize their market exposure. With a five year after-costs return of -0.66%, you're for the most part paying more in charges than returns.
First Investor International Opportunities Bond Institutional . Expense ratio: 0.91%. Management fee: 0.8%. Over the last 5 years, this fund has generated annual returns of -0.31%.
AQR Equity Market Neutral I (QMNIX - Free Report) - 1.27% expense ratio, 1.1% management fee. QMNIX is a Market Neutral - Equity mutual fund. Their portfolios typically hold 50% of their securities in a long position, and 50% in a short position. QMNIX has generated annual returns of 0.62% over the last five years. Ouch!
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 International Value Fund R6 (MINJX - Free Report) is a winner, with an expense ratio of just 0.62% and a five-year annualized return track record of 10.24%.
AQR Large Cap Defensive Style N (AUENX - Free Report) is a stand out fund. AUENX 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 13.1% and expense ratio of 0.65%, this diversified fund is an attractive buy with a strong history of performance.
Principal Large Cap Growth I A (PLGAX - Free Report) : Expense ratio: 1%. Management fee: 0.6%. PLGAX 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. PLGAX has produced a 10.91% 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.