We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - March 23, 2020
Read MoreHide Full Article
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.
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.
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.
Invesco Long/Short Equity Y : This fund has an expense ratio of 1.33% and a management fee of 0.8%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. LSQYX 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. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Camelot Premium Return A : 4.36% expense ratio, 1%. CPRFX 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 yearly returns of 1.17% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Templeton Global Balanced Fund A (TAGBX - Free Report) - 1.2% expense ratio, 0.73% management fee. This fund has yielded yearly returns of 1.18% in the course of the last five years. Too bad!
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.
MFS Research R6 (MFRKX - Free Report) : Expense ratio: 0.48%. Management fee: 0.43%. MFRKX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. This fund has achieved five-year annual returns of an astounding 11.82%.
Congress Mid Cap Growth Retail (CMIDX - Free Report) has an expense ratio of 1.08% and management fee of 0.6%. CMIDX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With annual returns of 10.65% over the last five years, this is a well-diversified fund with a long track record of success.
Victory Sycamore Established Value Y (VEVYX - Free Report) : Expense ratio: 0.63%. Management fee: 0.45%. VEVYX is a Mid Cap Value mutual funds that aims to target medium-sized companies that possess strong value and income opportunities for investors. VEVYX has produced a 10.4% 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.
Image: Bigstock
3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - 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.
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.
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.
Invesco Long/Short Equity Y : This fund has an expense ratio of 1.33% and a management fee of 0.8%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. LSQYX 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. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Camelot Premium Return A : 4.36% expense ratio, 1%. CPRFX 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 yearly returns of 1.17% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Templeton Global Balanced Fund A (TAGBX - Free Report) - 1.2% expense ratio, 0.73% management fee. This fund has yielded yearly returns of 1.18% in the course of the last five years. Too bad!
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.
MFS Research R6 (MFRKX - Free Report) : Expense ratio: 0.48%. Management fee: 0.43%. MFRKX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. This fund has achieved five-year annual returns of an astounding 11.82%.
Congress Mid Cap Growth Retail (CMIDX - Free Report) has an expense ratio of 1.08% and management fee of 0.6%. CMIDX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With annual returns of 10.65% over the last five years, this is a well-diversified fund with a long track record of success.
Victory Sycamore Established Value Y (VEVYX - Free Report) : Expense ratio: 0.63%. Management fee: 0.45%. VEVYX is a Mid Cap Value mutual funds that aims to target medium-sized companies that possess strong value and income opportunities for investors. VEVYX has produced a 10.4% 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.