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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.
AIG International Dividend Strategy A : 1.9% expense ratio and 1% management fee. SIEAX 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 -0.99%, you're for the most part paying more in charges than returns.
Snow Capital Small Cap Value A (SNWAX - Free Report) . Expense ratio: 1.5%. Management fee: 1%. Over the last 5 years, this fund has generated annual returns of -0.88%.
Catalyst MLP & Infrastructure A (MLXAX - Free Report) : Expense ratio: 1.68%. Management fee: 1.25%. MLXAX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With annual returns of just -7.96%, 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.
Columbia Select Large Cap Equity Fund R5 (CLCRX - Free Report) : 0.47% expense ratio and 0.76% management fee. CLCRX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. With an annual return of 11.69% over the last five years, this fund is a winner.
Fidelity Series Blue Chip Growth (FSBDX - Free Report) has an expense ratio of 0.02% and management fee of 0%. FSBDX 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. Thanks to yearly returns of 15.52% over the last five years, FSBDX is an effectively diversified fund with a long reputation of solidly positive performance.
Franklin Small Cap Growth R6 (FSMLX - Free Report) : Expense ratio: 0.64%. Management fee: 0.62%. FSMLX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. FSMLX has produced a 10.58% over the last five years.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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 30, 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.
AIG International Dividend Strategy A : 1.9% expense ratio and 1% management fee. SIEAX 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 -0.99%, you're for the most part paying more in charges than returns.
Snow Capital Small Cap Value A (SNWAX - Free Report) . Expense ratio: 1.5%. Management fee: 1%. Over the last 5 years, this fund has generated annual returns of -0.88%.
Catalyst MLP & Infrastructure A (MLXAX - Free Report) : Expense ratio: 1.68%. Management fee: 1.25%. MLXAX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With annual returns of just -7.96%, 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.
Columbia Select Large Cap Equity Fund R5 (CLCRX - Free Report) : 0.47% expense ratio and 0.76% management fee. CLCRX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. With an annual return of 11.69% over the last five years, this fund is a winner.
Fidelity Series Blue Chip Growth (FSBDX - Free Report) has an expense ratio of 0.02% and management fee of 0%. FSBDX 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. Thanks to yearly returns of 15.52% over the last five years, FSBDX is an effectively diversified fund with a long reputation of solidly positive performance.
Franklin Small Cap Growth R6 (FSMLX - Free Report) : Expense ratio: 0.64%. Management fee: 0.62%. FSMLX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. FSMLX has produced a 10.58% over the last five years.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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.