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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - January 07, 2020

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Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new advisor.

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.

MSIF Multi-Asset Fund A : Expense ratio: 1.42%. Management fee: 0.85%. After expenses, the 5 year return is -5.36%, meaning your fees are far higher than the fund's returns.

Legg Mason BW International Opportunities Bond A . Expense ratio: 1%. Management fee: 0.85%. Over the last 5 years, this fund has generated annual returns of -0.93%.

Templeton Global Balanced Fund A (TAGBX - Free Report) : Expense ratio: 1.2%. Management fee: 0.73%. TAGBX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With annual returns of just 0%, 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.

DoubleLine Shiller Enhanced CAPE N (DSENX - Free Report) : Expense ratio: 0.8%. Management fee: 0.45%. DSENX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. This fund has achieved five-year annual returns of an astounding 13.67%.

Janus Henderson Research N (JRANX - Free Report) is a stand out fund. JRANX 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. With five-year annualized performance of 11.59% and expense ratio of 0.54%, this diversified fund is an attractive buy with a strong history of performance.

Vanguard Global Minimum Volatility Fund Admiral (VMNVX - Free Report) is an attractive fund with a five-year annualized return of 10.54% and an expense ratio of just 0.15%. VMNVX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy.

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.

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