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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - November 28, 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 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.
Oppenheimer SteelPath MLP Alpha C (MLPGX - Free Report) : 2.29% expense ratio and 1.1% management fee. MLPGX 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 a five year after-costs return of -8.06%, you're for the most part paying more in charges than returns.
Lord Abbett Inflation Focused R2 (LIFQX - Free Report) : 1.08% expense ratio, 0.3% management fee. LIFQX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. This fund has an annual returns of -0.57% over the last five years. Another fund guilty of having investors pay more in fees than returns.
JPMorgan International Value L (JNUSX - Free Report) : This fund has an expense ratio of 0.66% and management fee of 0.6%. JNUSX 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. With an annual average return of -0.85% 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
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
Virtus KAR Small-Cap Core I (PKSFX - Free Report) : 1.02% expense ratio and 0.75% management fee. PKSFX is a Small Cap Blend mutual fund that usually targets companies with a market capitalization of less than $2 billion. With an annual return of 17.9% over the last five years, this fund is a winner.
MFS Mass Investors Growth Stock C (MIGDX - Free Report) is a stand out fund. MIGDX 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 12.76% and expense ratio of 1.48%, 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 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 10.54% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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.
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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - November 28, 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 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.
Oppenheimer SteelPath MLP Alpha C (MLPGX - Free Report) : 2.29% expense ratio and 1.1% management fee. MLPGX 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 a five year after-costs return of -8.06%, you're for the most part paying more in charges than returns.
Lord Abbett Inflation Focused R2 (LIFQX - Free Report) : 1.08% expense ratio, 0.3% management fee. LIFQX is classified as a Government - Bonds fund. These funds hold securities issued by the U.S. federal government in their portfolios, and focus across the curve, meaning the yields and interest rate sensitivity will vary. This fund has an annual returns of -0.57% over the last five years. Another fund guilty of having investors pay more in fees than returns.
JPMorgan International Value L (JNUSX - Free Report) : This fund has an expense ratio of 0.66% and management fee of 0.6%. JNUSX 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. With an annual average return of -0.85% 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
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
Virtus KAR Small-Cap Core I (PKSFX - Free Report) : 1.02% expense ratio and 0.75% management fee. PKSFX is a Small Cap Blend mutual fund that usually targets companies with a market capitalization of less than $2 billion. With an annual return of 17.9% over the last five years, this fund is a winner.
MFS Mass Investors Growth Stock C (MIGDX - Free Report) is a stand out fund. MIGDX 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 12.76% and expense ratio of 1.48%, 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 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 10.54% over the last five years, this fund is a well-diversified fund with a long track record of success.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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.