Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - December 04, 2019
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.
Hartford Global Real Asset C (HRLCX): This fund has an expense ratio of 2% and a management fee of 0.85%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. HRLCX 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. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Oppenheimer SteelPath MLP Alph Plus A (MLPLX): 2.8% expense ratio, 1.25% management fee. MLPLX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. This fund has an annual returns of -12.4% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Goldman Sachs Local Emerging Markets Debt IR (GLIRX): Expense ratio: 0.96%. Management fee: 0.8%. GLIRX is an International Bond - Emerging option; these funds focus on fixed income securities from a variety of emerging international markets. With annual returns of just -1.1%, 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.
Janus Henderson Research T (JAMRX) is a fund that has an expense ratio of 0.77%, and a management fee of 0.56%. JAMRX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. With yearly returns of 11.32% over the last five years, this fund clearly wins.
MassMutual Select Small Cap Growth Equity I (MSGZX) is a stand out fund. MSGZX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. With five-year annualized performance of 10.65% and expense ratio of 0.86%, this diversified fund is an attractive buy with a strong history of performance.
Neuberger Berman Real Estate Fund R3 (NRERX) has an expense ratio of 1.46% and management fee of 1.06%. NRERX is a Sector - Real Estate fund, and these kinds of mutual funds typically invest in eeal estate investment trusts (REITs) due to their taxation rules. With yearly returns of 10.31% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
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