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3 Mutual Fund Misfires to Avoid - November 04, 2019
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You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
High fees plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
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.
Federated Fund for US Government Security B : 1.71% expense ratio and 0.41% management fee. FUSBX 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.
ProFunds Pharm UltraSector Investor (PHPIX - Free Report) . Expense ratio: 1.8%. Management fee: 0.41%. Over the last 5 years, this fund has generated annual returns of 0.14%.
Templeton Foreign Adviser (TFFAX - Free Report) - 0.81% expense ratio, 0.69% management fee. This fund has yielded yearly returns of -0.55% 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 Enterprise S (JGRTX - Free Report) : Expense ratio: 1.16%. Management fee: 0.64%. JGRTX 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. This fund has achieved five-year annual returns of an astounding 14.41%.
Nationwide Growth Fund R (GGFRX - Free Report) is a stand out fund. 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. With five-year annualized performance of 11.53% and expense ratio of 1.35%, this diversified fund is an attractive buy with a strong history of performance.
T. Rowe Price Small Cap Stock Adviser (PASSX - Free Report) is an attractive fund with a five-year annualized return of 11.38% and an expense ratio of just 1.14%. PASSX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities.
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:
Image: Bigstock
3 Mutual Fund Misfires to Avoid - November 04, 2019
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
High fees plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
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.
Federated Fund for US Government Security B : 1.71% expense ratio and 0.41% management fee. FUSBX 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.
ProFunds Pharm UltraSector Investor (PHPIX - Free Report) . Expense ratio: 1.8%. Management fee: 0.41%. Over the last 5 years, this fund has generated annual returns of 0.14%.
Templeton Foreign Adviser (TFFAX - Free Report) - 0.81% expense ratio, 0.69% management fee. This fund has yielded yearly returns of -0.55% 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 Enterprise S (JGRTX - Free Report) : Expense ratio: 1.16%. Management fee: 0.64%. JGRTX 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. This fund has achieved five-year annual returns of an astounding 14.41%.
Nationwide Growth Fund R (GGFRX - Free Report) is a stand out fund. 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. With five-year annualized performance of 11.53% and expense ratio of 1.35%, this diversified fund is an attractive buy with a strong history of performance.
T. Rowe Price Small Cap Stock Adviser (PASSX - Free Report) is an attractive fund with a five-year annualized return of 11.38% and an expense ratio of just 1.14%. PASSX is a Small Cap Blend mutual fund, and usually targets stocks with market caps of less than $2 billion, letting investors diversify their funds among other kinds of small-cap equities.
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