We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are You Invested In These 3 Mutual Fund Misfires? - November 27, 2019
Read MoreHide Full Article
If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your advisor.
High fees coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every 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.
First Eagle Fund of America C (FEAMX - Free Report) : This fund has an expense ratio of 2.15% and a management fee of 0.9%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. FEAMX is an All Cap Value mutual fund, which invests in small, medium, and large-cap companies, though they end up focusing on bigger firms due to percentage of assets. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Sit Developing Markets Growth Fund (SDMGX - Free Report) : SDMGX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. SDMGX offers an expense ratio of 1.4% and annual returns of 1.33% 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.
Rydex Energy Services Investor (RYVIX - Free Report) : This fund has an expense ratio of 1.46% and management fee of 0.85%. RYVIX is classified as a Sector - Energy mutual fund. Throughout the massive global energy sector, these funds hold a wide range of quickly changing and vitally important industries. With an annual average return of -24.83% 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.
Voya Large Cap Growth A (NLCAX - Free Report) : Expense ratio: 0.95%. Management fee: 0.51%. NLCAX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. This fund has achieved five-year annual returns of an astounding 10.85%.
Loomis Sayles Small Cap Growth Retail (LCGRX - Free Report) is a stand out fund. LCGRX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With five-year annualized performance of 10.9% and expense ratio of 1.19%, this diversified fund is an attractive buy with a strong history of performance.
Fidelity Select Medical Equipment & Systems (FSMEX - Free Report) is an attractive fund with a five-year annualized return of 17.97% and an expense ratio of just 0.73%. FSMEX is a Sector - Health mutual fund, which give investors an opportunity to focus on healthcare, one of the largest sectors of the American economy.
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.
Do You Know the Top 9 Retirement Investing Mistakes?
Whether you're planning to retire early or not, don't let investing mistakes derail your plans.
Image: Bigstock
Are You Invested In These 3 Mutual Fund Misfires? - November 27, 2019
If your financial advisor made you buy any of these "Mutual Fund Misfires of the Market" with high expenses and low returns, you need to reassess your advisor.
High fees coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every 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.
First Eagle Fund of America C (FEAMX - Free Report) : This fund has an expense ratio of 2.15% and a management fee of 0.9%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. FEAMX is an All Cap Value mutual fund, which invests in small, medium, and large-cap companies, though they end up focusing on bigger firms due to percentage of assets. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Sit Developing Markets Growth Fund (SDMGX - Free Report) : SDMGX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. SDMGX offers an expense ratio of 1.4% and annual returns of 1.33% 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.
Rydex Energy Services Investor (RYVIX - Free Report) : This fund has an expense ratio of 1.46% and management fee of 0.85%. RYVIX is classified as a Sector - Energy mutual fund. Throughout the massive global energy sector, these funds hold a wide range of quickly changing and vitally important industries. With an annual average return of -24.83% 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.
Voya Large Cap Growth A (NLCAX - Free Report) : Expense ratio: 0.95%. Management fee: 0.51%. NLCAX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. This fund has achieved five-year annual returns of an astounding 10.85%.
Loomis Sayles Small Cap Growth Retail (LCGRX - Free Report) is a stand out fund. LCGRX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With five-year annualized performance of 10.9% and expense ratio of 1.19%, this diversified fund is an attractive buy with a strong history of performance.
Fidelity Select Medical Equipment & Systems (FSMEX - Free Report) is an attractive fund with a five-year annualized return of 17.97% and an expense ratio of just 0.73%. FSMEX is a Sector - Health mutual fund, which give investors an opportunity to focus on healthcare, one of the largest sectors of the American economy.
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.
Do You Know the Top 9 Retirement Investing Mistakes?
Whether you're planning to retire early or not, don't let investing mistakes derail your plans.
If you have $500,000 or more to invest and want to learn more, click the link to download our free report, 9 Retirement Mistakes that will Ruin Your Retirement.