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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - January 13, 2020
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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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
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.
First Investor International Opportunities Bond A : 1.44% expense ratio and 0.75% management fee. FIOBX is an International Bond - Developed mutual fund. Focusing on fixed income securities outside from developed nations besides the U.S., International Bond - Developed funds invest in assets from countries like Japan, Germany, the UK, France, and Australia. With a five year after-costs return of -1.41%, you're for the most part paying more in charges than returns.
Marketfield A (MFADX - Free Report) : 2.63% expense ratio, 1.4%. MFADX is a Long Short - Equity mutual fund, which look at taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline, but overall, hope to minimize their market exposure. This fund has yearly returns of -2.29% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Legg Mason BW International Opportunities Bond C - 1.75% expense ratio, 0.5% management fee. LIOCX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. LIOCX has generated annual returns of -0.86% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
MSIF Global Quality Portfolio IS (MGQSX - Free Report) : Expense ratio: 0.84%. Management fee: 0.7%. MGQSX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. This fund has achieved five-year annual returns of an astounding 10.22%.
MFS Mid-Cap Growth R6 (OTCKX - Free Report) is a stand out fund. OTCKX 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 five-year annualized performance of 13.94% and expense ratio of 0.74%, this diversified fund is an attractive buy with a strong history of performance.
Neuberger Berman Real Estate Fund R3 (NRERX - Free Report) is an attractive fund with a five-year annualized return of 10.31% and an expense ratio of just 1.46%. NRERX 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
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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
3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - January 13, 2020
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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
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.
First Investor International Opportunities Bond A : 1.44% expense ratio and 0.75% management fee. FIOBX is an International Bond - Developed mutual fund. Focusing on fixed income securities outside from developed nations besides the U.S., International Bond - Developed funds invest in assets from countries like Japan, Germany, the UK, France, and Australia. With a five year after-costs return of -1.41%, you're for the most part paying more in charges than returns.
Marketfield A (MFADX - Free Report) : 2.63% expense ratio, 1.4%. MFADX is a Long Short - Equity mutual fund, which look at taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline, but overall, hope to minimize their market exposure. This fund has yearly returns of -2.29% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Legg Mason BW International Opportunities Bond C - 1.75% expense ratio, 0.5% management fee. LIOCX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. LIOCX has generated annual returns of -0.86% over the last five years. Ouch!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
MSIF Global Quality Portfolio IS (MGQSX - Free Report) : Expense ratio: 0.84%. Management fee: 0.7%. MGQSX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. This fund has achieved five-year annual returns of an astounding 10.22%.
MFS Mid-Cap Growth R6 (OTCKX - Free Report) is a stand out fund. OTCKX 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 five-year annualized performance of 13.94% and expense ratio of 0.74%, this diversified fund is an attractive buy with a strong history of performance.
Neuberger Berman Real Estate Fund R3 (NRERX - Free Report) is an attractive fund with a five-year annualized return of 10.31% and an expense ratio of just 1.46%. NRERX 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
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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.