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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - April 02, 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 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.
Sterling Capital Intermediate US Government C (BIUCX - Free Report) : 1.56% expense ratio and 0.32% management fee. BIUCX is a Government Bond - Intermediate option. These type of funds hold securities issued by the U.S. federal government, and are seen as extremely low risk securities from a default perspective. With a five year after-costs return of 0.66%, you're for the most part paying more in charges than returns.
Columbia Disciplined Small Core C . Expense ratio: 2.1%. Management fee: 0.32%. Over the last 5 years, this fund has generated annual returns of 1.78%.
Saratoga International Equity I (SIEPX - Free Report) - 1.25% expense ratio, 0.75% management fee. SIEPX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. SIEPX has generated annual returns of 0.41% over the last five years. Ouch!
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.
Fidelity Advisor Technology I (FATIX - Free Report) : 0.76% expense ratio and 0.54% management fee. FATIX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. With an annual return of 20.28% over the last five years, this fund is a winner.
Oppenheimer Discovery R (ODINX - Free Report) is a stand out fund. ODINX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With five-year annualized performance of 12.3% and expense ratio of 1.33%, this diversified fund is an attractive buy with a strong history of performance.
PIMCO StocksPLUS Institutional (PSTKX - Free Report) : Expense ratio: 0.5%. Management fee: 0.5%. PSTKX 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. PSTKX has produced a 11.64% over the last five years.
Bottom Line
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
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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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - April 02, 2020
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 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.
Sterling Capital Intermediate US Government C (BIUCX - Free Report) : 1.56% expense ratio and 0.32% management fee. BIUCX is a Government Bond - Intermediate option. These type of funds hold securities issued by the U.S. federal government, and are seen as extremely low risk securities from a default perspective. With a five year after-costs return of 0.66%, you're for the most part paying more in charges than returns.
Columbia Disciplined Small Core C . Expense ratio: 2.1%. Management fee: 0.32%. Over the last 5 years, this fund has generated annual returns of 1.78%.
Saratoga International Equity I (SIEPX - Free Report) - 1.25% expense ratio, 0.75% management fee. SIEPX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. SIEPX has generated annual returns of 0.41% over the last five years. Ouch!
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.
Fidelity Advisor Technology I (FATIX - Free Report) : 0.76% expense ratio and 0.54% management fee. FATIX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. With an annual return of 20.28% over the last five years, this fund is a winner.
Oppenheimer Discovery R (ODINX - Free Report) is a stand out fund. ODINX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With five-year annualized performance of 12.3% and expense ratio of 1.33%, this diversified fund is an attractive buy with a strong history of performance.
PIMCO StocksPLUS Institutional (PSTKX - Free Report) : Expense ratio: 0.5%. Management fee: 0.5%. PSTKX 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. PSTKX has produced a 11.64% over the last five years.
Bottom Line
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
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.