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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - January 31, 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.
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.
Leader Short-Term Bond Fund Institutional (LCCIX - Free Report) : This fund has an expense ratio of 1.16% 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. LCCIX is an Investment Grade Bond - Short fund. By investing in bonds that mature in less than two years, Investment Grade Bond - Short funds are focused on the short end of the curve. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
AB Allocation Market Real Return C (ACMTX - Free Report) . Expense ratio: 2.01%. Management fee: 0.75%. Over the last 5 years, this fund has generated annual returns of 0.03%.
Harding Loevner Front Emerging Markets Institutional (HLFMX - Free Report) - 1.65% expense ratio, 1.35% management fee. This fund has yielded yearly returns of -0.63% 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.
Janus Henderson Global Technology A (JATAX - Free Report) : Expense ratio: 1.01%. Management fee: 0.64%. JATAX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. This fund has achieved five-year annual returns of an astounding 18.74%.
Columbia Select Large Cap Growth A (ELGAX - Free Report) : Expense ratio: 1.07%. Management fee: 0.66%. ELGAX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. ELGAX has managed to produce a robust 10.29% over the last five years.
Principal Capital Appreciation R1 (PCAMX - Free Report) has an expense ratio of 1.37% and management fee of 0.47%. PCAMX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. With yearly returns of 10.75% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - January 31, 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.
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.
Leader Short-Term Bond Fund Institutional (LCCIX - Free Report) : This fund has an expense ratio of 1.16% 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. LCCIX is an Investment Grade Bond - Short fund. By investing in bonds that mature in less than two years, Investment Grade Bond - Short funds are focused on the short end of the curve. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
AB Allocation Market Real Return C (ACMTX - Free Report) . Expense ratio: 2.01%. Management fee: 0.75%. Over the last 5 years, this fund has generated annual returns of 0.03%.
Harding Loevner Front Emerging Markets Institutional (HLFMX - Free Report) - 1.65% expense ratio, 1.35% management fee. This fund has yielded yearly returns of -0.63% 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.
Janus Henderson Global Technology A (JATAX - Free Report) : Expense ratio: 1.01%. Management fee: 0.64%. JATAX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. This fund has achieved five-year annual returns of an astounding 18.74%.
Columbia Select Large Cap Growth A (ELGAX - Free Report) : Expense ratio: 1.07%. Management fee: 0.66%. ELGAX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. ELGAX has managed to produce a robust 10.29% over the last five years.
Principal Capital Appreciation R1 (PCAMX - Free Report) has an expense ratio of 1.37% and management fee of 0.47%. PCAMX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. With yearly returns of 10.75% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).
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.