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Are You Invested In These 3 Mutual Fund Misfires? - March 12, 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.
American Century Short Duration C (ACSKX - Free Report) : 1.59% expense ratio and 0.58% management fee. ACSKX is part of the Government Bond - Short fund category. Often seen as risk-free assets, these funds hold securities issued by the U.S. federal government and they focus on the short end of the curve. With a five year after-costs return of 0.86%, you're for the most part paying more in charges than returns.
Dunham Emerging Market Stock C (DCEMX - Free Report) . Expense ratio: 2.61%. Management fee: 0.58%. Over the last 5 years, this fund has generated annual returns of 2.33%.
Janus Henderson Short Term Bond C (JSHCX - Free Report) : This fund has an expense ratio of 1.49% and management fee of 0.44%. JSHCX 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. With an annual average return of 0.73% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
TIAA-CREF Socl Choice Equity Retail (TICRX - Free Report) : Expense ratio: 0.45%. Management fee: 0.15%. TICRX 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. This fund has achieved five-year annual returns of an astounding 10.41%.
Dreyfus US Equity Fund A has an expense ratio of 1.15% and management fee of 0.75%. DPUAX 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 annual returns of 10.14% over the last five years, this is a well-diversified fund with a long track record of success.
BlackRock Mid Cap Growth Equity R (BMRRX - Free Report) is an attractive fund with a five-year annualized return of 15.11% and an expense ratio of just 1.3%. BMRRX 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.
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? - March 12, 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.
American Century Short Duration C (ACSKX - Free Report) : 1.59% expense ratio and 0.58% management fee. ACSKX is part of the Government Bond - Short fund category. Often seen as risk-free assets, these funds hold securities issued by the U.S. federal government and they focus on the short end of the curve. With a five year after-costs return of 0.86%, you're for the most part paying more in charges than returns.
Dunham Emerging Market Stock C (DCEMX - Free Report) . Expense ratio: 2.61%. Management fee: 0.58%. Over the last 5 years, this fund has generated annual returns of 2.33%.
Janus Henderson Short Term Bond C (JSHCX - Free Report) : This fund has an expense ratio of 1.49% and management fee of 0.44%. JSHCX 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. With an annual average return of 0.73% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.
3 Top Ranked Mutual Funds
Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.
TIAA-CREF Socl Choice Equity Retail (TICRX - Free Report) : Expense ratio: 0.45%. Management fee: 0.15%. TICRX 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. This fund has achieved five-year annual returns of an astounding 10.41%.
Dreyfus US Equity Fund A has an expense ratio of 1.15% and management fee of 0.75%. DPUAX 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 annual returns of 10.14% over the last five years, this is a well-diversified fund with a long track record of success.
BlackRock Mid Cap Growth Equity R (BMRRX - Free Report) is an attractive fund with a five-year annualized return of 15.11% and an expense ratio of just 1.3%. BMRRX 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.
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.