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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - November 07, 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.
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.
Rydex Energy Services Investor (RYVIX - Free Report) : 1.46% expense ratio and 0.85% management fee. RYVIX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. With a five year after-expenses return of -24.83%, you're mostly paying more in fees than returns.
JPMorgan International Value I (JIESX - Free Report) : 0.76% expense ratio, 0.6%. JIESX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. This fund has yearly returns of -0.96% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Ivy Cundill Global Value B - 3.19% expense ratio, 1% management fee. ICDBX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. ICDBX has generated annual returns of -2.64% over the last five years. Ouch!
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.
Principal Mid Cap R2 : 1.34% expense ratio and 0.58% management fee. PMBNX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With an annual return of 12.74% over the last five years, this fund is a winner.
Neuberger Berman Small Cap Growth Adviser (NBMVX - Free Report) is a stand out fund. NBMVX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. With five-year annualized performance of 12.2% and expense ratio of 1.45%, this diversified fund is an attractive buy with a strong history of performance.
Columbia Select Large Cap Equity Fund Z (NSEPX - Free Report) has an expense ratio of 0.55% and management fee of 0.76%. NSEPX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. With annual returns of 10.54% 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:
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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - November 07, 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.
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.
Rydex Energy Services Investor (RYVIX - Free Report) : 1.46% expense ratio and 0.85% management fee. RYVIX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. With a five year after-expenses return of -24.83%, you're mostly paying more in fees than returns.
JPMorgan International Value I (JIESX - Free Report) : 0.76% expense ratio, 0.6%. JIESX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. This fund has yearly returns of -0.96% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Ivy Cundill Global Value B - 3.19% expense ratio, 1% management fee. ICDBX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. ICDBX has generated annual returns of -2.64% over the last five years. Ouch!
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.
Principal Mid Cap R2 : 1.34% expense ratio and 0.58% management fee. PMBNX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With an annual return of 12.74% over the last five years, this fund is a winner.
Neuberger Berman Small Cap Growth Adviser (NBMVX - Free Report) is a stand out fund. NBMVX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. With five-year annualized performance of 12.2% and expense ratio of 1.45%, this diversified fund is an attractive buy with a strong history of performance.
Columbia Select Large Cap Equity Fund Z (NSEPX - Free Report) has an expense ratio of 0.55% and management fee of 0.76%. NSEPX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. With annual returns of 10.54% 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