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Mutual Fund Misfires of the Market - December 18, 2019
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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.
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.
Invesco Long/Short Equity R6 : Expense ratio: 1.13%. Management fee: 0.8%. After expenses, the 5 year return is 0.75%, meaning your fees are far higher than the fund's returns.
Dreyfus Emerging Markets I : 1.75% expense ratio, 1.25%. DRPEX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has yearly returns of 0.14% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
AB Allocation Market Real Return Z (AMTZX - Free Report) : This fund has an expense ratio of 0.84% and management fee of 0.75%. AMTZX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. With an annual average return of -2.3% 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 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.
MFS Global Growth Fund I (MWOIX - Free Report) : 1.12% expense ratio and 0.9% management fee. MWOIX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With an annual return of 10.93% over the last five years, this fund is a winner.
Brown Advisory Growth Equity Investor (BIAGX - Free Report) is a stand out fund. BIAGX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. With five-year annualized performance of 13.98% and expense ratio of 0.85%, this diversified fund is an attractive buy with a strong history of performance.
Lord Abbett Developing Growth I (LADYX - Free Report) has an expense ratio of 0.69% and management fee of 0.51%. LADYX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With yearly returns of 10.13% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
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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Mutual Fund Misfires of the Market - December 18, 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.
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.
Invesco Long/Short Equity R6 : Expense ratio: 1.13%. Management fee: 0.8%. After expenses, the 5 year return is 0.75%, meaning your fees are far higher than the fund's returns.
Dreyfus Emerging Markets I : 1.75% expense ratio, 1.25%. DRPEX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has yearly returns of 0.14% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
AB Allocation Market Real Return Z (AMTZX - Free Report) : This fund has an expense ratio of 0.84% and management fee of 0.75%. AMTZX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. With an annual average return of -2.3% 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 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.
MFS Global Growth Fund I (MWOIX - Free Report) : 1.12% expense ratio and 0.9% management fee. MWOIX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. With an annual return of 10.93% over the last five years, this fund is a winner.
Brown Advisory Growth Equity Investor (BIAGX - Free Report) is a stand out fund. BIAGX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. With five-year annualized performance of 13.98% and expense ratio of 0.85%, this diversified fund is an attractive buy with a strong history of performance.
Lord Abbett Developing Growth I (LADYX - Free Report) has an expense ratio of 0.69% and management fee of 0.51%. LADYX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With yearly returns of 10.13% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.
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.