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Avoid These 3 Mutual Fund Misfires - October 10, 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.
Hartford International Small Company R3 : Expense ratio: 1.65%. Management fee: 0.9%. After expenses, the 5 year return is -0.3%, meaning your fees are far higher than the fund's returns.
Copeland Risk Managed Dividend Growth A (CDGRX - Free Report) : 1.45% expense ratio, 1%. CDGRX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. This fund has yearly returns of 1.28% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Wells Fargo Absolute Return C (WARCX - Free Report) - 2.23% expense ratio, 0.72% management fee. This fund has yielded yearly returns of 0.42% 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.
Janus Henderson Global Technology S (JATSX - Free Report) is a fund that has an expense ratio of 1.23%, and a management fee of 0.64%. JATSX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. With yearly returns of 17.79% over the last five years, this fund clearly wins.
Fidelity Select Health Care Services (FSHCX - Free Report) has an expense ratio of 0.76% and management fee of 0.54%. FSHCX is part of the Sector - Health category, offering investors a focus on the healthcare industry, one of the largest sectors in the American economy. With annual returns of 11.83% over the last five years, this is a well-diversified fund with a long track record of success.
City Natural Rochdale US Core Equity & Income Service Class (CNRVX - Free Report) has an expense ratio of 0.78% and management fee of 0.4%. CNRVX 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 yearly returns of 11.22% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
If you have concerns or any doubts about your investment advisor, read our just-released report:
Image: Bigstock
Avoid These 3 Mutual Fund Misfires - October 10, 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.
Hartford International Small Company R3 : Expense ratio: 1.65%. Management fee: 0.9%. After expenses, the 5 year return is -0.3%, meaning your fees are far higher than the fund's returns.
Copeland Risk Managed Dividend Growth A (CDGRX - Free Report) : 1.45% expense ratio, 1%. CDGRX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. This fund has yearly returns of 1.28% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Wells Fargo Absolute Return C (WARCX - Free Report) - 2.23% expense ratio, 0.72% management fee. This fund has yielded yearly returns of 0.42% 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.
Janus Henderson Global Technology S (JATSX - Free Report) is a fund that has an expense ratio of 1.23%, and a management fee of 0.64%. JATSX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. With yearly returns of 17.79% over the last five years, this fund clearly wins.
Fidelity Select Health Care Services (FSHCX - Free Report) has an expense ratio of 0.76% and management fee of 0.54%. FSHCX is part of the Sector - Health category, offering investors a focus on the healthcare industry, one of the largest sectors in the American economy. With annual returns of 11.83% over the last five years, this is a well-diversified fund with a long track record of success.
City Natural Rochdale US Core Equity & Income Service Class (CNRVX - Free Report) has an expense ratio of 0.78% and management fee of 0.4%. CNRVX 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 yearly returns of 11.22% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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