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Are You Invested In These 3 Mutual Fund Misfires? - December 23, 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.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Rational Dividend Capture Institutional (HDCTX - Free Report) : This fund has an expense ratio of 1% and a management fee of 0.75%. 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. HDCTX is a Large Cap Value mutual fund, which invests in stocks with a market cap of $10 billion of more, but whose share prices do not reflect their intrinsic value. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Aberdeen International Equity A . Expense ratio: 1.53%. Management fee: 0.75%. Over the last 5 years, this fund has generated annual returns of -1.06%.
Putnam Dynamic Risk Allocation B : Expense ratio: 1.9%. Management fee: 0.72%. PDRBX is an Allocation Balanced mutual fund. Allocation Balanced funds look to invest across asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation. With annual returns of just 1.66%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
T. Rowe Price Mid-Cap Growth Adviser (PAMCX - Free Report) is a winner, with an expense ratio of just 1.01% and a five-year annualized return track record of 12.87%.
JPMorgan Large Cap Growth C (OLGCX - Free Report) is a stand out fund. OLGCX 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 13.36% and expense ratio of 1.43%, this diversified fund is an attractive buy with a strong history of performance.
MassMutual Select Small Cap Growth Equity I (MSGZX - Free Report) : Expense ratio: 0.86%. Management fee: 0.8%. MSGZX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. MSGZX has produced a 10.65% over the last five years.
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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Are You Invested In These 3 Mutual Fund Misfires? - December 23, 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.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Rational Dividend Capture Institutional (HDCTX - Free Report) : This fund has an expense ratio of 1% and a management fee of 0.75%. 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. HDCTX is a Large Cap Value mutual fund, which invests in stocks with a market cap of $10 billion of more, but whose share prices do not reflect their intrinsic value. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Aberdeen International Equity A . Expense ratio: 1.53%. Management fee: 0.75%. Over the last 5 years, this fund has generated annual returns of -1.06%.
Putnam Dynamic Risk Allocation B : Expense ratio: 1.9%. Management fee: 0.72%. PDRBX is an Allocation Balanced mutual fund. Allocation Balanced funds look to invest across asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation. With annual returns of just 1.66%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
T. Rowe Price Mid-Cap Growth Adviser (PAMCX - Free Report) is a winner, with an expense ratio of just 1.01% and a five-year annualized return track record of 12.87%.
JPMorgan Large Cap Growth C (OLGCX - Free Report) is a stand out fund. OLGCX 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 13.36% and expense ratio of 1.43%, this diversified fund is an attractive buy with a strong history of performance.
MassMutual Select Small Cap Growth Equity I (MSGZX - Free Report) : Expense ratio: 0.86%. Management fee: 0.8%. MSGZX is one of many Small Cap Growth mutual funds; these funds tend to create their portfolios around stocks with market capitalization of less than $2 billion. MSGZX has produced a 10.65% over the last five years.
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.