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Avoid These 3 Mutual Fund Misfires - March 31, 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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each 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.
The Texas I (BIGTX - Free Report) : 1.64% expense ratio and 1.45% management fee. BIGTX is a Mid Cap Blend mutual fund that typically features a portfolio filled with stocks of various sizes and styles; it allows for a diversification strategy focusing on companies with market caps between $2 billion and $10 billion. With a five year after-costs return of 1.14%, you're for the most part paying more in charges than returns.
Snow Capital Small Cap Value C (SNWCX - Free Report) : 2.24% expense ratio, 0.95% management fee. SNWCX is a Small Cap Value mutual fund, investing in small companies with stock market valuation less than $2 billion. This fund has an annual returns of -0.6% over the last five years. Another fund guilty of having investors pay more in fees than returns.
AQR Equity Market Neutral R6 (QMNRX - Free Report) : Expense ratio: 1.2%. Management fee: 1.1%. QMNRX is a Market Neutral - Equity mutual fund. These portfolios usually hold 50% of their securities in a long position, as well as 50% in a short position. With annual returns of just 0.69%, 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.
MassMutual Select Equity Opportunities I (MFVZX - Free Report) : 0.74% expense ratio and 0.69% management fee. MFVZX 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 10.84% over the last five years, this fund is a winner.
MFS Mass Investors Growth Stock R2 (MIRGX - Free Report) has an expense ratio of 0.97% and management fee of 0.33%. MIRGX 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. With annual returns of 13.7% over the last five years, this is a well-diversified fund with a long track record of success.
MSIF Global Opportunity Portfolio L (MGGLX - Free Report) is an attractive fund with a five-year annualized return of 17.5% and an expense ratio of just 1.29%. MGGLX 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.
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.
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Avoid These 3 Mutual Fund Misfires - March 31, 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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each 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.
The Texas I (BIGTX - Free Report) : 1.64% expense ratio and 1.45% management fee. BIGTX is a Mid Cap Blend mutual fund that typically features a portfolio filled with stocks of various sizes and styles; it allows for a diversification strategy focusing on companies with market caps between $2 billion and $10 billion. With a five year after-costs return of 1.14%, you're for the most part paying more in charges than returns.
Snow Capital Small Cap Value C (SNWCX - Free Report) : 2.24% expense ratio, 0.95% management fee. SNWCX is a Small Cap Value mutual fund, investing in small companies with stock market valuation less than $2 billion. This fund has an annual returns of -0.6% over the last five years. Another fund guilty of having investors pay more in fees than returns.
AQR Equity Market Neutral R6 (QMNRX - Free Report) : Expense ratio: 1.2%. Management fee: 1.1%. QMNRX is a Market Neutral - Equity mutual fund. These portfolios usually hold 50% of their securities in a long position, as well as 50% in a short position. With annual returns of just 0.69%, 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.
MassMutual Select Equity Opportunities I (MFVZX - Free Report) : 0.74% expense ratio and 0.69% management fee. MFVZX 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 10.84% over the last five years, this fund is a winner.
MFS Mass Investors Growth Stock R2 (MIRGX - Free Report) has an expense ratio of 0.97% and management fee of 0.33%. MIRGX 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. With annual returns of 13.7% over the last five years, this is a well-diversified fund with a long track record of success.
MSIF Global Opportunity Portfolio L (MGGLX - Free Report) is an attractive fund with a five-year annualized return of 17.5% and an expense ratio of just 1.29%. MGGLX 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.
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.