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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - March 31, 2020

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Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new 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.

First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.

3 Mutual Fund Misfires

Now, let's take a look at three market misfires.

AB Short Duration A (ADPAX - Free Report) : This fund has an expense ratio of 0.97% and a management fee of 0.35%. 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. ADPAX is part of the Government Bond - Short fund category. Often seen as risk-free assets, these funds hold securities issued by the U.S. federal government and they focus on the short end of the curve. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.

Aquila Hawaiian Tax Free Trust C (HULCX - Free Report) . Expense ratio: 1.68%. Management fee: 0.35%. Over the last 5 years, this fund has generated annual returns of 0.96%.

Hotchkis and Wiley Mid-Cap Value A (HWMAX - Free Report) - 1.25% expense ratio, 0.75% management fee. This fund has yielded yearly returns of -0.49% in the course of the last five years. Too bad!

3 Top Ranked Mutual Funds

There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.

Principal Large Cap Growth I R6 (PLCGX - Free Report) is a fund that has an expense ratio of 0.59%, and a management fee of 0.6%. PLCGX 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 yearly returns of 15.39% over the last five years, this fund clearly wins.

MassMutual Select Mid Cap Growth I (MEFZX - Free Report) is a stand out fund. MEFZX 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. With five-year annualized performance of 12.99% and expense ratio of 0.71%, this diversified fund is an attractive buy with a strong history of performance.

Victory Sycamore Established Value R6 (VEVRX - Free Report) has an expense ratio of 0.58% and management fee of 0.45%. VEVRX is a Mid Cap Value mutual fund, which targets medium-sized companies with a market cap between $2 billion and $10 billion. With yearly returns of 10.51% over the last five years, this fund is well-diversified with a long reputation of salutary performance.

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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