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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - December 26, 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.
Oppenheimer SteelPath MLP Alph Plus I (MLPNX - Free Report) : 2.55% expense ratio and 1.25% management fee. MLPNX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With a five year after-expenses return of -11.2%, you're mostly paying more in fees than returns.
Brandes International Small Cap Equity A (BISAX - Free Report) : 1.36% expense ratio, 0.95%. BISAX 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. This fund has yearly returns of -1.94% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Hartford Global Real Asset C (HRLCX - Free Report) : This fund has an expense ratio of 2% and management fee of 0.85%. HRLCX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With an annual average return of -2.58% 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
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
VY T. Rower Price Diversified Mid Cap Growth Advisor (IAXAX - Free Report) is a fund that has an expense ratio of 1.28%, and a management fee of 0.74%. IAXAX 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 yearly returns of 11.81% over the last five years, this fund clearly wins.
MFS Mass Investors Growth Stock R2 (MIRGX - Free Report) has an expense ratio of 0.98% and management fee of 0.33%. MIRGX 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. Thanks to yearly returns of 13.32% over the last five years, MIRGX is an effectively diversified fund with a long reputation of solidly positive performance.
Hartford Core Equity R5 (HGITX - Free Report) is an attractive fund with a five-year annualized return of 12.27% and an expense ratio of just 0.49%. HGITX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset.
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.
Image: Bigstock
Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - December 26, 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.
Oppenheimer SteelPath MLP Alph Plus I (MLPNX - Free Report) : 2.55% expense ratio and 1.25% management fee. MLPNX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With a five year after-expenses return of -11.2%, you're mostly paying more in fees than returns.
Brandes International Small Cap Equity A (BISAX - Free Report) : 1.36% expense ratio, 0.95%. BISAX 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. This fund has yearly returns of -1.94% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Hartford Global Real Asset C (HRLCX - Free Report) : This fund has an expense ratio of 2% and management fee of 0.85%. HRLCX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With an annual average return of -2.58% 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
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
VY T. Rower Price Diversified Mid Cap Growth Advisor (IAXAX - Free Report) is a fund that has an expense ratio of 1.28%, and a management fee of 0.74%. IAXAX 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 yearly returns of 11.81% over the last five years, this fund clearly wins.
MFS Mass Investors Growth Stock R2 (MIRGX - Free Report) has an expense ratio of 0.98% and management fee of 0.33%. MIRGX 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. Thanks to yearly returns of 13.32% over the last five years, MIRGX is an effectively diversified fund with a long reputation of solidly positive performance.
Hartford Core Equity R5 (HGITX - Free Report) is an attractive fund with a five-year annualized return of 12.27% and an expense ratio of just 0.49%. HGITX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset.
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.