Are You Invested In These 3 Mutual Fund Misfires? - October 07, 2019
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.
JPMorgan Inflation Managed Bond C (JIMCX): 1.4% expense ratio and 0.35% management fee. JIMCX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. With a five year after-expenses return of 0.34%, you're mostly paying more in fees than returns.
Rydex Emerging Market 2X Strategy H (RYWVX): RYWVX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. RYWVX offers an expense ratio of 1.85% and annual returns of -2.52% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
Hartford Emerging Market Local Debt C (HLDCX): Expense ratio: 2%. Management fee: 0.85%. HLDCX is an International Bond - Emerging mutual fund, which focus on fixed income securities from emerging nations around the globe. With annual returns of just -1.3%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.
Great-West Multi Manager Large Cap Growth (MXLGX): 1% expense ratio and 0.64% management fee. MXLGX 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 an annual return of 13.39% over the last five years, this fund is a winner.
Diamond Hill Large Cap Fund Y (DHLYX): Expense ratio: 0.55%. Management fee: 0.5%. DHLYX 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. DHLYX has managed to produce a robust 10.56% over the last five years.
Oppenheimer International Small -Mid Company I (OSCIX): Expense ratio: 0.96%. Management fee: 0.91%. OSCIX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. OSCIX has produced a 10.37% over the last five years.
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.
If you have concerns or any doubts about your investment advisor, read our just-released report:
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