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Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - March 27, 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.
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.
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.
Ascendant Deep Value Convertibles C : This fund has an expense ratio of 2.87% and a management fee of 1.15%. 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. AEQCX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Eagle MLP Strategy I (EGLIX - Free Report) : EGLIX is classified as a Sector - Energy mutual fund. Throughout the massive global energy sector, these funds hold a wide range of quickly changing and vitally important industries. EGLIX offers an expense ratio of 1.4% and annual returns of -8.66% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
Hartford World Bond C (HWDCX - Free Report) : Expense ratio: 1.75%. Management fee: 0.59%. HWDCX is an International Bond - Developed fund, and these funds funds focus on fixed income securities from developed nations apart from the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. With annual returns of just 1.42%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Nuance Mid Cap Value Fund Investor (NMAVX - Free Report) : 1.18% expense ratio and 0.75% management fee. NMAVX is a Mid Cap Value mutual funds that aims to target medium-sized companies that possess strong value and income opportunities for investors. With an annual return of 10.51% over the last five years, this fund is a winner.
Baron Global Advantage Fund Retail (BGAFX - Free Report) : Expense ratio: 1.15%. Management fee: 0.85%. BGAFX 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. BGAFX has managed to produce a robust 15.18% over the last five years.
Janus Henderson Enterprise N (JDMNX - Free Report) has an expense ratio of 0.66% and management fee of 0.64%. JDMNX 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 yearly returns of 14.59% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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
Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - March 27, 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.
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.
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.
Ascendant Deep Value Convertibles C : This fund has an expense ratio of 2.87% and a management fee of 1.15%. 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. AEQCX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Eagle MLP Strategy I (EGLIX - Free Report) : EGLIX is classified as a Sector - Energy mutual fund. Throughout the massive global energy sector, these funds hold a wide range of quickly changing and vitally important industries. EGLIX offers an expense ratio of 1.4% and annual returns of -8.66% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.
Hartford World Bond C (HWDCX - Free Report) : Expense ratio: 1.75%. Management fee: 0.59%. HWDCX is an International Bond - Developed fund, and these funds funds focus on fixed income securities from developed nations apart from the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. With annual returns of just 1.42%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Nuance Mid Cap Value Fund Investor (NMAVX - Free Report) : 1.18% expense ratio and 0.75% management fee. NMAVX is a Mid Cap Value mutual funds that aims to target medium-sized companies that possess strong value and income opportunities for investors. With an annual return of 10.51% over the last five years, this fund is a winner.
Baron Global Advantage Fund Retail (BGAFX - Free Report) : Expense ratio: 1.15%. Management fee: 0.85%. BGAFX 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. BGAFX has managed to produce a robust 15.18% over the last five years.
Janus Henderson Enterprise N (JDMNX - Free Report) has an expense ratio of 0.66% and management fee of 0.64%. JDMNX 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 yearly returns of 14.59% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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.