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Mutual Fund Misfires of the Market - October 03, 2019

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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.

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.

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.

Brookfield Global Listed Infrastructure A (BGLAX - Free Report) : 1.35% expense ratio and 0.85% management fee. BGLAX 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 a five year after-costs return of -0.64%, you're for the most part paying more in charges than returns.

Western Asset Short Duration High Income C (LWHIX - Free Report) : 1.72% expense ratio, 0.55%. LWHIX is a High Yield - Bonds fund. Often referred to as junk bonds, High Yield - Bonds funds sit below investment grade, meaning they are at a high default risk compared to their investment grade peers. This fund has yearly returns of 1.12% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.

PIMCO Dividend & Income A (PQIZX - Free Report) - 1.15% expense ratio, 0.89% management fee. This fund has yielded yearly returns of 1.02% in the course of the last five years. Too bad!

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.

MSIF Global Opportunity Portfolio IS (MGTSX - Free Report) : Expense ratio: 0.84%. Management fee: 0.74%. MGTSX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. This fund has achieved five-year annual returns of an astounding 16.96%.

BMO Large-Cap Growth Fund A : Expense ratio: 0.79%. Management fee: 0.35%. BALGX 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. BALGX has managed to produce a robust 11.83% over the last five years.

JPMorgan Large Cap Growth R5 (JLGRX - Free Report) has an expense ratio of 0.53% and management fee of 0.5%. JLGRX 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 annual returns of 15.4% over the last five years, this fund is a well-diversified fund with a long track record of success.

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

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