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Mutual Fund Misfires of the Market - March 30, 2020
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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 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.
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.
Templeton International Bond Fund C (FCNBX - Free Report) : 1.39% expense ratio and 0.68% management fee. FCNBX is an International Bond - Developed fund, and these funds funds focus on fixed income securities from developed nations apart from the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. With a five year after-expenses return of 0.97%, you're mostly paying more in fees than returns.
Transamerica Small Cap Core A : 1.26% expense ratio, 0.83%. SCCAX is a Small Cap Value fund, and these funds are known for investing in companies with market caps under $2 billion. This fund has yearly returns of 1.09% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
PSI Tactical Growth Fund A : This fund has an expense ratio of 1.9% and management fee of 1%. FXTAX 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 an annual average return of -0.35% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
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.
MSIF Global Quality Portfolio IS (MGQSX - Free Report) : Expense ratio: 0.84%. Management fee: 0.7%. MGQSX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. This fund has achieved five-year annual returns of an astounding 12.04%.
City Natural Rochdale US Core Equity & Income Service Class (CNRVX - Free Report) has an expense ratio of 0.77% and management fee of 0.4%. CNRVX 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. With annual returns of 12.27% over the last five years, this is a well-diversified fund with a long track record of success.
WCM Focused International Growth Fund Investor (WCMRX - Free Report) has an expense ratio of 1.21% and management fee of 0.85%. WCMRX is a Non US - Equity fund. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels. With yearly returns of 11.59% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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.
Image: Bigstock
Mutual Fund Misfires of the Market - March 30, 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 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.
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.
Templeton International Bond Fund C (FCNBX - Free Report) : 1.39% expense ratio and 0.68% management fee. FCNBX is an International Bond - Developed fund, and these funds funds focus on fixed income securities from developed nations apart from the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. With a five year after-expenses return of 0.97%, you're mostly paying more in fees than returns.
Transamerica Small Cap Core A : 1.26% expense ratio, 0.83%. SCCAX is a Small Cap Value fund, and these funds are known for investing in companies with market caps under $2 billion. This fund has yearly returns of 1.09% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
PSI Tactical Growth Fund A : This fund has an expense ratio of 1.9% and management fee of 1%. FXTAX 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 an annual average return of -0.35% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
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.
MSIF Global Quality Portfolio IS (MGQSX - Free Report) : Expense ratio: 0.84%. Management fee: 0.7%. MGQSX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. This fund has achieved five-year annual returns of an astounding 12.04%.
City Natural Rochdale US Core Equity & Income Service Class (CNRVX - Free Report) has an expense ratio of 0.77% and management fee of 0.4%. CNRVX 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. With annual returns of 12.27% over the last five years, this is a well-diversified fund with a long track record of success.
WCM Focused International Growth Fund Investor (WCMRX - Free Report) has an expense ratio of 1.21% and management fee of 0.85%. WCMRX is a Non US - Equity fund. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels. With yearly returns of 11.59% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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.