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 - April 02, 2020
Read MoreHide Full Article
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 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.
Davis Government Bond C (DGVCX - Free Report) : Expense ratio: 1.8%. Management fee: 0.3%. After expenses, the 5 year return is 0.05%, meaning your fees are far higher than the fund's returns.
Federated Government Income Securities C : 1.76% expense ratio, 0.6% management fee. FGOCX is a Government Mortgage - Intermediate mutual fund; these funds focus on the mortgage-backed securities (MBS) market and specifially, securities that have at least three years, but less than 10, to maturity. This fund has an annual returns of 1.07% over the last five years. Another fund guilty of having investors pay more in fees than returns.
RBC Emerging Markets Small Cap Equity I : Expense ratio: 1.45%. Management fee: 1.25%. RESIX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With annual returns of just 0.93%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
T. Rowe Price Global Stock (PRGSX - Free Report) is a winner, with an expense ratio of just 0.82% and a five-year annualized return track record of 14.2%.
Mar Vista Strategic Growth Institutional : Expense ratio: 0.71%. Management fee: 0.6%. MVSGX 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. MVSGX has managed to produce a robust 11.52% over the last five years.
JPMorgan Mid Cap Growth Fund R5 (JMGFX - Free Report) : Expense ratio: 0.79%. Management fee: 0.65%. JMGFX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. JMGFX has produced a 12.2% over the last five years.
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.
Image: Bigstock
Avoid These 3 Mutual Fund Misfires - April 02, 2020
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 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.
Davis Government Bond C (DGVCX - Free Report) : Expense ratio: 1.8%. Management fee: 0.3%. After expenses, the 5 year return is 0.05%, meaning your fees are far higher than the fund's returns.
Federated Government Income Securities C : 1.76% expense ratio, 0.6% management fee. FGOCX is a Government Mortgage - Intermediate mutual fund; these funds focus on the mortgage-backed securities (MBS) market and specifially, securities that have at least three years, but less than 10, to maturity. This fund has an annual returns of 1.07% over the last five years. Another fund guilty of having investors pay more in fees than returns.
RBC Emerging Markets Small Cap Equity I : Expense ratio: 1.45%. Management fee: 1.25%. RESIX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With annual returns of just 0.93%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
T. Rowe Price Global Stock (PRGSX - Free Report) is a winner, with an expense ratio of just 0.82% and a five-year annualized return track record of 14.2%.
Mar Vista Strategic Growth Institutional : Expense ratio: 0.71%. Management fee: 0.6%. MVSGX 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. MVSGX has managed to produce a robust 11.52% over the last five years.
JPMorgan Mid Cap Growth Fund R5 (JMGFX - Free Report) : Expense ratio: 0.79%. Management fee: 0.65%. JMGFX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. JMGFX has produced a 12.2% over the last five years.
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.