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Are You Invested In These 3 Mutual Fund Misfires? - February 25, 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.
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.
Camelot Excalibur Small Cap Income A : 3.04% expense ratio and 1% management fee. CEXAX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion. With a five year after-expenses return of 1.61%, you're mostly paying more in fees than returns.
Invesco Long/Short Equity A : 1.58% expense ratio, 0.8%. LSQAX is a Long Short - Equity fund, and these funds aim to minimize exposure to the broader market, taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. This fund has yearly returns of -0.99% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Templeton Frontier Markets C - 2.71% expense ratio, 1.4% management fee. FFRMX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. FFRMX has generated annual returns of -3.98% over the last five years. Ouch!
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.
Fidelity Series Opportunistic Insights (FVWSX - Free Report) is a winner, with an expense ratio of just 0.03% and a five-year annualized return track record of 13.07%.
Congress Mid Cap Growth Institutional (IMIDX - Free Report) : Expense ratio: 0.83%. Management fee: 0.6%. IMIDX 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. IMIDX has managed to produce a robust 10.93% over the last five years.
Russell Select US Equity Y (RTDYX - Free Report) : Expense ratio: 0.37%. Management fee: 0.3%. RTDYX 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. RTDYX has produced a 10.99% over the last five years.
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.
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Are You Invested In These 3 Mutual Fund Misfires? - February 25, 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.
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.
Camelot Excalibur Small Cap Income A : 3.04% expense ratio and 1% management fee. CEXAX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion. With a five year after-expenses return of 1.61%, you're mostly paying more in fees than returns.
Invesco Long/Short Equity A : 1.58% expense ratio, 0.8%. LSQAX is a Long Short - Equity fund, and these funds aim to minimize exposure to the broader market, taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline. This fund has yearly returns of -0.99% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Templeton Frontier Markets C - 2.71% expense ratio, 1.4% management fee. FFRMX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. FFRMX has generated annual returns of -3.98% over the last five years. Ouch!
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.
Fidelity Series Opportunistic Insights (FVWSX - Free Report) is a winner, with an expense ratio of just 0.03% and a five-year annualized return track record of 13.07%.
Congress Mid Cap Growth Institutional (IMIDX - Free Report) : Expense ratio: 0.83%. Management fee: 0.6%. IMIDX 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. IMIDX has managed to produce a robust 10.93% over the last five years.
Russell Select US Equity Y (RTDYX - Free Report) : Expense ratio: 0.37%. Management fee: 0.3%. RTDYX 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. RTDYX has produced a 10.99% over the last five years.
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.