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3 Mutual Fund Misfires to Avoid - December 09, 2019
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If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your advisor.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
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.
Camelot Excalibur Small Cap Income A : 2.62% expense ratio and 1% management fee. CEXAX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion. With a five year after-costs return of 1.58%, you're for the most part paying more in charges than returns.
Marketfield R6 : 2.28% expense ratio, 1.4% management fee. MFRIX is a Long Short - Equity option. These funds' investment strategy consists of minimizing overall market exposure, while at the same time taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. This fund has an annual returns of -0.87% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Fidelity Advisor Event Driven Opportunities A - 1.53% expense ratio, 0.8% management fee. FCHSX 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. FCHSX has generated annual returns of 1.35% 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.
Nationwide Growth R6 (MUIGX - Free Report) : 0.65% expense ratio and 0.6% management fee. MUIGX 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 an annual return of 12.2% over the last five years, this fund is a winner.
Fidelity Real Estate Investment (FRESX - Free Report) is a stand out fund. Sector - Real Estate funds like FRESX are known to invest in real estate investment trusts (REITs). A popular income vehicle thanks to its taxation rules, a REIT is required to pay out at least 90% of its income annually to avoid double taxation. With five-year annualized performance of 10.48% and expense ratio of 0.74%, this diversified fund is an attractive buy with a strong history of performance.
Janus Henderson Global Technology I (JATIX - Free Report) is an attractive fund with a five-year annualized return of 18.88% and an expense ratio of just 0.78%. With a much more diversified approach, JATIX--part of the Sector - Tech mutual fund category--gives investors a way to own a stake in the notoriously risky tech sector.
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
3 Mutual Fund Misfires to Avoid - December 09, 2019
If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink your advisor.
The easiest way to judge a mutual fund's quality over time is by analyzing its performance and fees. Our Zacks Rank of over 19,000 mutual funds has identified some of the worst of the worst mutual funds you should avoid, the funds with the highest fees and poorest long-term performance.
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.
Camelot Excalibur Small Cap Income A : 2.62% expense ratio and 1% management fee. CEXAX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion. With a five year after-costs return of 1.58%, you're for the most part paying more in charges than returns.
Marketfield R6 : 2.28% expense ratio, 1.4% management fee. MFRIX is a Long Short - Equity option. These funds' investment strategy consists of minimizing overall market exposure, while at the same time taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. This fund has an annual returns of -0.87% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Fidelity Advisor Event Driven Opportunities A - 1.53% expense ratio, 0.8% management fee. FCHSX 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. FCHSX has generated annual returns of 1.35% 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.
Nationwide Growth R6 (MUIGX - Free Report) : 0.65% expense ratio and 0.6% management fee. MUIGX 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 an annual return of 12.2% over the last five years, this fund is a winner.
Fidelity Real Estate Investment (FRESX - Free Report) is a stand out fund. Sector - Real Estate funds like FRESX are known to invest in real estate investment trusts (REITs). A popular income vehicle thanks to its taxation rules, a REIT is required to pay out at least 90% of its income annually to avoid double taxation. With five-year annualized performance of 10.48% and expense ratio of 0.74%, this diversified fund is an attractive buy with a strong history of performance.
Janus Henderson Global Technology I (JATIX - Free Report) is an attractive fund with a five-year annualized return of 18.88% and an expense ratio of just 0.78%. With a much more diversified approach, JATIX--part of the Sector - Tech mutual fund category--gives investors a way to own a stake in the notoriously risky tech sector.
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.