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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - January 14, 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 coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every 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.
ProFunds Oil Equipment Service Class & Distribution Investor (OEPIX - Free Report) : This fund has an expense ratio of 2.09% 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. OEPIX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Templeton Emerging Markets Small Cap C (TCEMX - Free Report) : 2.67% expense ratio, 1.35% management fee. TCEMX 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 an annual returns of 0.05% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Highland Long/Short Equity A - 2.88% expense ratio, 2.25% management fee. This fund has yielded yearly returns of 0.69% in the course of the last five years. Too bad!
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.
Artisan Global Opportunities Investor (ARTRX - Free Report) : Expense ratio: 1.16%. Management fee: 0.88%. ARTRX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. This fund has achieved five-year annual returns of an astounding 10.58%.
T. Rowe Price Institutional Large Cap Core (TPLGX - Free Report) has an expense ratio of 0.56% and management fee of 0.55%. TPLGX 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 14.28% over the last five years, TPLGX is an effectively diversified fund with a long reputation of solidly positive performance.
JPMorgan Small Cap Growth Fund R2 (JSGZX - Free Report) has an expense ratio of 1.49% and management fee of 0.65%. JSGZX 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. With annual returns of 13.24% over the last five years, this fund is a well-diversified fund with a long track record of success.
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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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - January 14, 2020
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 coupled with poor results: It's a straightforward equation for an awful mutual fund. Some are more regrettable than others - and some are bad to the point that they have got a "Strong Sell" from our Zacks Rank, the lowest positioning of the almost 19,000 mutual funds we rank every 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.
ProFunds Oil Equipment Service Class & Distribution Investor (OEPIX - Free Report) : This fund has an expense ratio of 2.09% 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. OEPIX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Templeton Emerging Markets Small Cap C (TCEMX - Free Report) : 2.67% expense ratio, 1.35% management fee. TCEMX 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 an annual returns of 0.05% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Highland Long/Short Equity A - 2.88% expense ratio, 2.25% management fee. This fund has yielded yearly returns of 0.69% in the course of the last five years. Too bad!
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.
Artisan Global Opportunities Investor (ARTRX - Free Report) : Expense ratio: 1.16%. Management fee: 0.88%. ARTRX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. This fund has achieved five-year annual returns of an astounding 10.58%.
T. Rowe Price Institutional Large Cap Core (TPLGX - Free Report) has an expense ratio of 0.56% and management fee of 0.55%. TPLGX 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 14.28% over the last five years, TPLGX is an effectively diversified fund with a long reputation of solidly positive performance.
JPMorgan Small Cap Growth Fund R2 (JSGZX - Free Report) has an expense ratio of 1.49% and management fee of 0.65%. JSGZX 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. With annual returns of 13.24% over the last five years, this fund is a well-diversified fund with a long track record of success.
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.