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.
Avoid These 3 Mutual Fund Misfires - March 30, 2020
Read MoreHide Full Article
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.
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.
Franklin US Government Security C (FRUGX - Free Report) : Expense ratio: 1.28%. Management fee: 0.45%. After expenses, the 5 year return is 1.1%, meaning your fees are far higher than the fund's returns.
Camelot Excalibur Small Cap Income A . Expense ratio: 3.04%. Management fee: 0.45%. Over the last 5 years, this fund has generated annual returns of 1.61%.
Ivy Natural Resources B - 3.78% expense ratio, 0.85% management fee. IGNBX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. IGNBX has generated annual returns of -5.46% over the last five years. Ouch!
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.
Dreyfus Appreciation Fund Y (DGYGX - Free Report) : Expense ratio: 0.59%. Management fee: 0.55%. DGYGX 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. This fund has achieved five-year annual returns of an astounding 11.22%.
City Natural Rochdale US Core Equity & Income N (CNRWX - Free Report) has an expense ratio of 1.02% and management fee of 0.4%. CNRWX 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% over the last five years, this is a well-diversified fund with a long track record of success.
MSIF Global Quality Portfolio A (MGQAX - Free Report) has an expense ratio of 1.24% and management fee of 0.7%. MGQAX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With annual returns of 10.47% over the last five years, this fund is a well-diversified fund with a long track record of success.
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
Avoid These 3 Mutual Fund Misfires - 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.
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.
Franklin US Government Security C (FRUGX - Free Report) : Expense ratio: 1.28%. Management fee: 0.45%. After expenses, the 5 year return is 1.1%, meaning your fees are far higher than the fund's returns.
Camelot Excalibur Small Cap Income A . Expense ratio: 3.04%. Management fee: 0.45%. Over the last 5 years, this fund has generated annual returns of 1.61%.
Ivy Natural Resources B - 3.78% expense ratio, 0.85% management fee. IGNBX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. IGNBX has generated annual returns of -5.46% over the last five years. Ouch!
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.
Dreyfus Appreciation Fund Y (DGYGX - Free Report) : Expense ratio: 0.59%. Management fee: 0.55%. DGYGX 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. This fund has achieved five-year annual returns of an astounding 11.22%.
City Natural Rochdale US Core Equity & Income N (CNRWX - Free Report) has an expense ratio of 1.02% and management fee of 0.4%. CNRWX 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% over the last five years, this is a well-diversified fund with a long track record of success.
MSIF Global Quality Portfolio A (MGQAX - Free Report) has an expense ratio of 1.24% and management fee of 0.7%. MGQAX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With annual returns of 10.47% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.