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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - 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 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.
Lord Abbett Inflation Focused A (LIFAX - Free Report) : Expense ratio: 0.68%. Management fee: 0.3%. After expenses, the 5 year return is -0.62%, meaning your fees are far higher than the fund's returns.
AB Allocation Market Real Return I . Expense ratio: 0.85%. Management fee: 0.3%. Over the last 5 years, this fund has generated annual returns of -2.29%.
Legg Mason BW Absolute Return Opportunity A (LROAX - Free Report) - 1.2% expense ratio, 0.64% management fee. This fund has yielded yearly returns of -0.07% in the course of the last five years. Too bad!
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.
Commerce Growth Fund (CFGRX - Free Report) : Expense ratio: 0.75%. Management fee: 0.4%. CFGRX 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 14.37%.
Davenport Equity Opportunities Fund (DEOPX - Free Report) has an expense ratio of 0.91% and management fee of 0.75%. DEOPX 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. With annual returns of 10.54% over the last five years, this is a well-diversified fund with a long track record of success.
Loomis Sayles Small Cap Growth I (LSSIX - Free Report) is an attractive fund with a five-year annualized return of 11.17% and an expense ratio of just 0.94%. LSSIX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets.
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.
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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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - 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 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.
Lord Abbett Inflation Focused A (LIFAX - Free Report) : Expense ratio: 0.68%. Management fee: 0.3%. After expenses, the 5 year return is -0.62%, meaning your fees are far higher than the fund's returns.
AB Allocation Market Real Return I . Expense ratio: 0.85%. Management fee: 0.3%. Over the last 5 years, this fund has generated annual returns of -2.29%.
Legg Mason BW Absolute Return Opportunity A (LROAX - Free Report) - 1.2% expense ratio, 0.64% management fee. This fund has yielded yearly returns of -0.07% in the course of the last five years. Too bad!
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.
Commerce Growth Fund (CFGRX - Free Report) : Expense ratio: 0.75%. Management fee: 0.4%. CFGRX 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 14.37%.
Davenport Equity Opportunities Fund (DEOPX - Free Report) has an expense ratio of 0.91% and management fee of 0.75%. DEOPX 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. With annual returns of 10.54% over the last five years, this is a well-diversified fund with a long track record of success.
Loomis Sayles Small Cap Growth I (LSSIX - Free Report) is an attractive fund with a five-year annualized return of 11.17% and an expense ratio of just 0.94%. LSSIX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets.
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.
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.