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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - October 04, 2019
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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.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
AB Allocation Market Real Return A (AMTAX - Free Report) : 1.26% expense ratio and 0.75% management fee. AMTAX 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 a five year after-costs return of -4.97%, you're for the most part paying more in charges than returns.
Columbia Disciplined Small Core R4 : 1.11% expense ratio, 0.85%. CFFRX is a Small Cap Value mutual fund, investing in small companies with stock market valuation less than $2 billion. This fund has yearly returns of 0.69% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Hartford Global Real Asset C (HRLCX - Free Report) : This fund has an expense ratio of 2% and management fee of 0.85%. HRLCX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With an annual average return of -3.26% 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.
Fidelity Series Blue Chip Growth (FSBDX - Free Report) is a winner, with an expense ratio of just 0.01% and a five-year annualized return track record of 14.78%.
KP Large Cap Equity Institutional : Expense ratio: 0.3%. Management fee: 0.24%. KPLCX 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. KPLCX has managed to produce a robust 10.55% over the last five years.
Neuberger Berman Mid Cap Growth R6 (NRMGX - Free Report) : Expense ratio: 0.62%. Management fee: 0.55%. NRMGX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. NRMGX has produced a 10.43% over the last five years.
Bottom Line
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.
If you have concerns or any doubts about your investment advisor, read our just-released report:
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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - October 04, 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.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
AB Allocation Market Real Return A (AMTAX - Free Report) : 1.26% expense ratio and 0.75% management fee. AMTAX 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 a five year after-costs return of -4.97%, you're for the most part paying more in charges than returns.
Columbia Disciplined Small Core R4 : 1.11% expense ratio, 0.85%. CFFRX is a Small Cap Value mutual fund, investing in small companies with stock market valuation less than $2 billion. This fund has yearly returns of 0.69% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Hartford Global Real Asset C (HRLCX - Free Report) : This fund has an expense ratio of 2% and management fee of 0.85%. HRLCX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With an annual average return of -3.26% 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.
Fidelity Series Blue Chip Growth (FSBDX - Free Report) is a winner, with an expense ratio of just 0.01% and a five-year annualized return track record of 14.78%.
KP Large Cap Equity Institutional : Expense ratio: 0.3%. Management fee: 0.24%. KPLCX 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. KPLCX has managed to produce a robust 10.55% over the last five years.
Neuberger Berman Mid Cap Growth R6 (NRMGX - Free Report) : Expense ratio: 0.62%. Management fee: 0.55%. NRMGX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. NRMGX has produced a 10.43% over the last five years.
Bottom Line
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.
If you have concerns or any doubts about your investment advisor, read our just-released report:
4 Warning Signs That Your Advisor Might be Sabotaging Your Financial Future