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Are You Invested In These 3 Mutual Fund Misfires? - March 31, 2020

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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.

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.

Forester Discovery Fund : This fund has an expense ratio of 1.35% and a management fee of 1%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. INTLX 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. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.

Hotchkis and Wiley Mid-Cap Value C (HWMCX - Free Report) . Expense ratio: 2%. Management fee: 1%. Over the last 5 years, this fund has generated annual returns of -0.23%.

AB Unconstrained Bond K - 0.9% expense ratio, 0.5% management fee. AGSKX is classified as a Diversified Bonds fund, which offers exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. AGSKX has generated annual returns of 0.5% over the last five years. Ouch!

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.

Conestoga Smid Cap Investor (CCSMX - Free Report) : Expense ratio: 1.1%. Management fee: 0.85%. CCSMX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. This fund has achieved five-year annual returns of an astounding 14.54%.

Principal SmCap Gr I R6 (PCSMX - Free Report) : Expense ratio: 0.99%. Management fee: 1.08%. PCSMX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. PCSMX has managed to produce a robust 12.04% over the last five years.

Fidelity Advisor Growth Opportunit (FAOFX - Free Report) : Expense ratio: 0.01%. Management fee: 0%. FAOFX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. FAOFX has produced a 18.84% over the last five years.

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.

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