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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - January 09, 2020
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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.
Pacific Advisors Mid Cap Value A : 6.75% expense ratio and 1% management fee. PAMVX is a Mid Cap Blend mutual fund, and usually features a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on mid cap companies. With a five year after-expenses return of -4.62%, you're mostly paying more in fees than returns.
Dreyfus Emerging Markets I : 1.75% expense ratio, 1.25% management fee. 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 an annual returns of 0.14% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Ivy Cundill Global Value Y - 1.36% expense ratio, 1% management fee. This fund has yielded yearly returns of -0.66% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Brown Advisory Growth Equity Institutional (BAFGX - Free Report) : 0.7% expense ratio and 0.59% management fee. BAFGX 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 14.14% over the last five years, this fund is a winner.
T. Rowe Price Institutional Mid-Cap Equity Growth (PMEGX - Free Report) has an expense ratio of 0.61% and management fee of 0.6%. PMEGX 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. Thanks to yearly returns of 13.83% over the last five years, PMEGX is an effectively diversified fund with a long reputation of solidly positive performance.
Neuberger Berman Real Estate Fund R6 (NRREX - Free Report) is an attractive fund with a five-year annualized return of 11.04% and an expense ratio of just 0.76%. NRREX is a Sector - Real Estate fund, and these kinds of mutual funds typically invest in eeal estate investment trusts (REITs) due to their taxation rules.
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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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - January 09, 2020
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.
Pacific Advisors Mid Cap Value A : 6.75% expense ratio and 1% management fee. PAMVX is a Mid Cap Blend mutual fund, and usually features a portfolio with stocks of various styles and sizes, allowing for diversification within a strategy that focuses on mid cap companies. With a five year after-expenses return of -4.62%, you're mostly paying more in fees than returns.
Dreyfus Emerging Markets I : 1.75% expense ratio, 1.25% management fee. 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 an annual returns of 0.14% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Ivy Cundill Global Value Y - 1.36% expense ratio, 1% management fee. This fund has yielded yearly returns of -0.66% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Brown Advisory Growth Equity Institutional (BAFGX - Free Report) : 0.7% expense ratio and 0.59% management fee. BAFGX 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 14.14% over the last five years, this fund is a winner.
T. Rowe Price Institutional Mid-Cap Equity Growth (PMEGX - Free Report) has an expense ratio of 0.61% and management fee of 0.6%. PMEGX 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. Thanks to yearly returns of 13.83% over the last five years, PMEGX is an effectively diversified fund with a long reputation of solidly positive performance.
Neuberger Berman Real Estate Fund R6 (NRREX - Free Report) is an attractive fund with a five-year annualized return of 11.04% and an expense ratio of just 0.76%. NRREX is a Sector - Real Estate fund, and these kinds of mutual funds typically invest in eeal estate investment trusts (REITs) due to their taxation rules.
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.