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If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your 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.
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 C : 2.48% expense ratio and 1.05% management fee. GSYCX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. With a five year after-costs return of -3.52%, you're for the most part paying more in charges than returns.
Pacific Advisors Small Cap I . Expense ratio: 5.21%. Management fee: 1.05%. Over the last 5 years, this fund has generated annual returns of -1.07%.
AQR Multi Strategy Alternative I : Expense ratio: 1.96%. Management fee: 1.75%. ASAIX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. With annual returns of just -2.66%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
T. Rowe Price Cap Opportunity (PRCOX - Free Report) is a winner, with an expense ratio of just 0.53% and a five-year annualized return track record of 12.13%.
Oppenheimer Gold & Special Mineral R (OGMNX - Free Report) has an expense ratio of 1.42% and management fee of 0.68%. OGMNX is classified as a Sector - Precious Metal fund, and these mutual funds invest in stocks with a focus on the mining and production of precious metals like gold, silver, platinum, and palladium. Thanks to yearly returns of 10.94% over the last five years, OGMNX is an effectively diversified fund with a long reputation of solidly positive performance.
AQR Large Cap Momentum Style N (AMONX - Free Report) : Expense ratio: 0.65%. Management fee: 0.25%. AMONX 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. AMONX has produced a 10.37% over the last five years.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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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3 Mutual Fund Misfires to Avoid - March 25, 2020
If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your 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.
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 C : 2.48% expense ratio and 1.05% management fee. GSYCX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. With a five year after-costs return of -3.52%, you're for the most part paying more in charges than returns.
Pacific Advisors Small Cap I . Expense ratio: 5.21%. Management fee: 1.05%. Over the last 5 years, this fund has generated annual returns of -1.07%.
AQR Multi Strategy Alternative I : Expense ratio: 1.96%. Management fee: 1.75%. ASAIX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. With annual returns of just -2.66%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
T. Rowe Price Cap Opportunity (PRCOX - Free Report) is a winner, with an expense ratio of just 0.53% and a five-year annualized return track record of 12.13%.
Oppenheimer Gold & Special Mineral R (OGMNX - Free Report) has an expense ratio of 1.42% and management fee of 0.68%. OGMNX is classified as a Sector - Precious Metal fund, and these mutual funds invest in stocks with a focus on the mining and production of precious metals like gold, silver, platinum, and palladium. Thanks to yearly returns of 10.94% over the last five years, OGMNX is an effectively diversified fund with a long reputation of solidly positive performance.
AQR Large Cap Momentum Style N (AMONX - Free Report) : Expense ratio: 0.65%. Management fee: 0.25%. AMONX 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. AMONX has produced a 10.37% over the last five years.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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.