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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - April 06, 2020
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If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your 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.
Great-West Templeton Global Bond (MXGBX - Free Report) : Expense ratio: 1.01%. Management fee: 0.58%. After expenses, the 5 year return is 0.86%, meaning your fees are far higher than the fund's returns.
Ivy Natural Resources C (IGNCX - Free Report) . Expense ratio: 2.46%. Management fee: 0.58%. Over the last 5 years, this fund has generated annual returns of -4.4%.
Bread & Butter Fund : This fund has an expense ratio of 2% and management fee of 1%. BABFX is categorized as an All Cap Value fund, and like the name suggests, invests across the cap spectrum in small-cap, mid-cap, and large-cap companies. With an annual average return of 0.43% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
Federated MDT Allocation Cap Core I (QIACX - Free Report) : 0.29% expense ratio and 0.7% management fee. QIACX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. With an annual return of 10.03% over the last five years, this fund is a winner.
MFS Mass Investors Growth Stock R3 (MIGHX - Free Report) has an expense ratio of 0.72% and management fee of 0.33%. MIGHX 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 annual returns of 13.98% over the last five years, this is a well-diversified fund with a long track record of success.
AB Small Cap Growth Adviser (QUAYX - Free Report) has an expense ratio of 0.91% and management fee of 0.75%. QUAYX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With annual returns of 14.02% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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 06, 2020
If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your 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.
Great-West Templeton Global Bond (MXGBX - Free Report) : Expense ratio: 1.01%. Management fee: 0.58%. After expenses, the 5 year return is 0.86%, meaning your fees are far higher than the fund's returns.
Ivy Natural Resources C (IGNCX - Free Report) . Expense ratio: 2.46%. Management fee: 0.58%. Over the last 5 years, this fund has generated annual returns of -4.4%.
Bread & Butter Fund : This fund has an expense ratio of 2% and management fee of 1%. BABFX is categorized as an All Cap Value fund, and like the name suggests, invests across the cap spectrum in small-cap, mid-cap, and large-cap companies. With an annual average return of 0.43% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
Federated MDT Allocation Cap Core I (QIACX - Free Report) : 0.29% expense ratio and 0.7% management fee. QIACX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. With an annual return of 10.03% over the last five years, this fund is a winner.
MFS Mass Investors Growth Stock R3 (MIGHX - Free Report) has an expense ratio of 0.72% and management fee of 0.33%. MIGHX 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 annual returns of 13.98% over the last five years, this is a well-diversified fund with a long track record of success.
AB Small Cap Growth Adviser (QUAYX - Free Report) has an expense ratio of 0.91% and management fee of 0.75%. QUAYX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With annual returns of 14.02% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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.