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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - November 22, 2019
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If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your advisor.
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.
Dreyfus GNMA A (GPGAX - Free Report) : 1.06% expense ratio and 0.5% management fee. GPGAX is a Government Mortgage - Intermediate mutual fund; these funds focus on the mortgage-backed securities (MBS) market and specifially, securities that have at least three years, but less than 10, to maturity. With a five year after-expenses return of 0.92%, you're mostly paying more in fees than returns.
AB Allocation Market Real Return 2 : 0.81% expense ratio, 0.75%. AMTTX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. This fund has yearly returns of -2.27% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
AMF Ultra Short Mortgage Fund : This fund has an expense ratio of 1.4% and management fee of 0.45%. ASARX is a Government Mortgage - Short mutual fund; these funds focus on the mortgage-backed securities (MBS) market and specifially, securities that have less than three years until maturity. With an annual average return of -0.02% 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
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 Global Technology I (JATIX - Free Report) : 0.78% expense ratio and 0.64% management fee. JATIX is part of the Sector - Tech mutual fund category that invests in technology and lets investors own a stake in a notoriously volatile sector, but with a much more diversified approach. With an annual return of 18.88% over the last five years, this fund is a winner.
Principal Capital Appreciation R2 has an expense ratio of 1.24% and management fee of 0.47%. PCANX 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 annual returns of 10.36% over the last five years, this is a well-diversified fund with a long track record of success.
BlackRock Advantage Large Cap Growth R (BMCRX - Free Report) : Expense ratio: 1.12%. Management fee: 0.57%. BMCRX is a Mid Cap Growth mutual fund. Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers. BMCRX has produced a 10.27% over the last five years.
Bottom Line
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.
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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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - November 22, 2019
If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your advisor.
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.
Dreyfus GNMA A (GPGAX - Free Report) : 1.06% expense ratio and 0.5% management fee. GPGAX is a Government Mortgage - Intermediate mutual fund; these funds focus on the mortgage-backed securities (MBS) market and specifially, securities that have at least three years, but less than 10, to maturity. With a five year after-expenses return of 0.92%, you're mostly paying more in fees than returns.
AB Allocation Market Real Return 2 : 0.81% expense ratio, 0.75%. AMTTX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. This fund has yearly returns of -2.27% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
AMF Ultra Short Mortgage Fund : This fund has an expense ratio of 1.4% and management fee of 0.45%. ASARX is a Government Mortgage - Short mutual fund; these funds focus on the mortgage-backed securities (MBS) market and specifially, securities that have less than three years until maturity. With an annual average return of -0.02% 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
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 Global Technology I (JATIX - Free Report) : 0.78% expense ratio and 0.64% management fee. JATIX is part of the Sector - Tech mutual fund category that invests in technology and lets investors own a stake in a notoriously volatile sector, but with a much more diversified approach. With an annual return of 18.88% over the last five years, this fund is a winner.
Principal Capital Appreciation R2 has an expense ratio of 1.24% and management fee of 0.47%. PCANX 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 annual returns of 10.36% over the last five years, this is a well-diversified fund with a long track record of success.
BlackRock Advantage Large Cap Growth R (BMCRX - Free Report) : Expense ratio: 1.12%. Management fee: 0.57%. BMCRX is a Mid Cap Growth mutual fund. Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers. BMCRX has produced a 10.27% over the last five years.
Bottom Line
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.
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.