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3 Mutual Fund Misfires to Avoid - October 15, 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.
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.
AB International Value A (ABIAX - Free Report) : Expense ratio: 1.57%. Management fee: 0.75%. After expenses, the 5 year return is -0.7%, meaning your fees are far higher than the fund's returns.
Forester Discovery Fund : INTLX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. INTLX offers an expense ratio of 1.35% and annual returns of -1.48% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
Hotchkis and Wiley Mid-Cap Value A (HWMAX - Free Report) : This fund has an expense ratio of 1.25% and management fee of 0.75%. HWMAX is a Mid Cap Value mutual funds that aims to target medium-sized companies that possess strong value and income opportunities for investors. With an annual average return of -1.23% 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.
Principal Small Cap Growth I R5 (PPNPX - Free Report) is a fund that has an expense ratio of 1.25%, and a management fee of 1.08%. PPNPX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With yearly returns of 11.11% over the last five years, this fund clearly wins.
Hartford Core Equity Y (HGIYX - Free Report) has an expense ratio of 0.42% and management fee of 0.35%. HGIYX 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 12.33% over the last five years, this is a well-diversified fund with a long track record of success.
Nationwide Growth Fund R (GGFRX - Free Report) is an attractive fund with a five-year annualized return of 11.53% and an expense ratio of just 1.35%. GGFRX 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.
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:
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3 Mutual Fund Misfires to Avoid - October 15, 2019
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.
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.
AB International Value A (ABIAX - Free Report) : Expense ratio: 1.57%. Management fee: 0.75%. After expenses, the 5 year return is -0.7%, meaning your fees are far higher than the fund's returns.
Forester Discovery Fund : INTLX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. INTLX offers an expense ratio of 1.35% and annual returns of -1.48% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
Hotchkis and Wiley Mid-Cap Value A (HWMAX - Free Report) : This fund has an expense ratio of 1.25% and management fee of 0.75%. HWMAX is a Mid Cap Value mutual funds that aims to target medium-sized companies that possess strong value and income opportunities for investors. With an annual average return of -1.23% 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.
Principal Small Cap Growth I R5 (PPNPX - Free Report) is a fund that has an expense ratio of 1.25%, and a management fee of 1.08%. PPNPX is a Small Cap Growth mutual fund building their portfolio around stocks with market caps under $2 billion and large growth opportunities. With yearly returns of 11.11% over the last five years, this fund clearly wins.
Hartford Core Equity Y (HGIYX - Free Report) has an expense ratio of 0.42% and management fee of 0.35%. HGIYX 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 12.33% over the last five years, this is a well-diversified fund with a long track record of success.
Nationwide Growth Fund R (GGFRX - Free Report) is an attractive fund with a five-year annualized return of 11.53% and an expense ratio of just 1.35%. GGFRX 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.
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