Mutual Fund Misfires of the Market - November 11, 2019
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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each 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.
JPMorgan International Value Fund R6 (JNVMX): Expense ratio: 0.55%. Management fee: 0.6%. After expenses, the 5 year return is -0.23%, meaning your fees are far higher than the fund's returns.
Touchstone Ultra Short Duration Fixed Income Y (TSYYX): 0.44% expense ratio, 0.25%. TSYYX is a Government Bond - Short fund, and these funds hold securities issued by the U.S. federal government. This category focuses on the short end of the curve, and are seen as extremely low risk securities from a default perspective. This fund has yearly returns of -0.26% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Wells Fargo Asset Allocation C (EACFX): Expense ratio: 2.06%. Management fee: 0.27%. EACFX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. With annual returns of just 1.88%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
MFS Mid-Cap Growth Fund R2 (MCPRX): 1.38% expense ratio and 0.71% management fee. MCPRX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With an annual return of 13.26% over the last five years, this fund is a winner.
T. Rowe Price Institutional Large Cap Growth (TRLGX) is a stand out fund. TRLGX 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. With five-year annualized performance of 14.74% and expense ratio of 0.56%, this diversified fund is an attractive buy with a strong history of performance.
Fidelity Advisor Semiconductors A (FELAX): Expense ratio: 1.14%. Management fee: 0.54%. FELAX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. FELAX has produced a 17.68% over the last five years.
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.
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