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.
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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each 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.
Neuberger Berman Absolute Return Multi Manager C (NABCX - Free Report) : Expense ratio: 3.09%. Management fee: 1.96%. After expenses, the 5 year return is -0.36%, meaning your fees are far higher than the fund's returns.
Ashmore Emerge Markets Local Current Bond C (ELBCX - Free Report) : 1.97% expense ratio, 0.95%. ELBCX is part of the International Bond - Emerging section. International Bond - Emerging funds offer a unique type of geographic diversification by focusing on fixed income securities from emerging nations around the globe. This fund has yearly returns of 1.65% 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 C (FCGBX - Free Report) : Expense ratio: 1.95%. Management fee: 0.73%. FCGBX 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. With annual returns of just 1.53%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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 Mid-Cap Growth R6 (OTCKX - Free Report) is a winner, with an expense ratio of just 0.74% and a five-year annualized return track record of 14.09%.
AQR Large Cap Momentum Style R6 (QMORX - Free Report) has an expense ratio of 0.3% and management fee of 0.25%. QMORX 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. Thanks to yearly returns of 10.74% over the last five years, QMORX is an effectively diversified fund with a long reputation of solidly positive performance.
Victory Sycamore Small Company Opportunity Y (VSOYX - Free Report) is an attractive fund with a five-year annualized return of 10.82% and an expense ratio of just 1.07%. VSOYX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion.
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
3 Mutual Fund Misfires to Avoid - 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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each 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.
Neuberger Berman Absolute Return Multi Manager C (NABCX - Free Report) : Expense ratio: 3.09%. Management fee: 1.96%. After expenses, the 5 year return is -0.36%, meaning your fees are far higher than the fund's returns.
Ashmore Emerge Markets Local Current Bond C (ELBCX - Free Report) : 1.97% expense ratio, 0.95%. ELBCX is part of the International Bond - Emerging section. International Bond - Emerging funds offer a unique type of geographic diversification by focusing on fixed income securities from emerging nations around the globe. This fund has yearly returns of 1.65% 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 C (FCGBX - Free Report) : Expense ratio: 1.95%. Management fee: 0.73%. FCGBX 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. With annual returns of just 1.53%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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 Mid-Cap Growth R6 (OTCKX - Free Report) is a winner, with an expense ratio of just 0.74% and a five-year annualized return track record of 14.09%.
AQR Large Cap Momentum Style R6 (QMORX - Free Report) has an expense ratio of 0.3% and management fee of 0.25%. QMORX 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. Thanks to yearly returns of 10.74% over the last five years, QMORX is an effectively diversified fund with a long reputation of solidly positive performance.
Victory Sycamore Small Company Opportunity Y (VSOYX - Free Report) is an attractive fund with a five-year annualized return of 10.82% and an expense ratio of just 1.07%. VSOYX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion.
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.