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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - March 30, 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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each 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.
Invesco Macro Allocation Strategy C (GMSEX - Free Report) : 2.12% expense ratio and 1.1% management fee. GMSEX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. With a five year after-costs return of 1.69%, you're for the most part paying more in charges than returns.
AQR Style Premia Alternative I (QSPIX - Free Report) : 1.48% expense ratio, 1.35%. QSPIX is a Long Short - Equity option. These funds' investment strategy consists of minimizing overall market exposure, while at the same time 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 -0.48% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
MainGate MLP Fund C (MLCPX - Free Report) : This fund has an expense ratio of 2.44% and management fee of 1.25%. MLCPX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. With an annual average return of -8.32% 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.
AB Discovery Growth Z (CHCZX - Free Report) : Expense ratio: 0.66%. Management fee: 0.61%. CHCZX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. This fund has achieved five-year annual returns of an astounding 11.7%.
MSIF Global Opportunity Portfolio IS (MGTSX - Free Report) has an expense ratio of 0.84% and management fee of 0.74%. MGTSX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. Thanks to yearly returns of 18.03% over the last five years, MGTSX is an effectively diversified fund with a long reputation of solidly positive performance.
Franklin DynaTech R6 (FDTRX - Free Report) : Expense ratio: 0.5%. Management fee: 0.46%. FDTRX is part of the Sector - Tech mutual fund category that invests in technology and lets investors own a stake in a notoriously volatile sector, but with a much more diversified approach. FDTRX has produced a 16.95% 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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3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - March 30, 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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each 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.
Invesco Macro Allocation Strategy C (GMSEX - Free Report) : 2.12% expense ratio and 1.1% management fee. GMSEX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. With a five year after-costs return of 1.69%, you're for the most part paying more in charges than returns.
AQR Style Premia Alternative I (QSPIX - Free Report) : 1.48% expense ratio, 1.35%. QSPIX is a Long Short - Equity option. These funds' investment strategy consists of minimizing overall market exposure, while at the same time 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 -0.48% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
MainGate MLP Fund C (MLCPX - Free Report) : This fund has an expense ratio of 2.44% and management fee of 1.25%. MLCPX is a Sector - Energy fund, which are comprised of various changing and hugely important industries throughout the massive global energy sector. With an annual average return of -8.32% 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.
AB Discovery Growth Z (CHCZX - Free Report) : Expense ratio: 0.66%. Management fee: 0.61%. CHCZX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. This fund has achieved five-year annual returns of an astounding 11.7%.
MSIF Global Opportunity Portfolio IS (MGTSX - Free Report) has an expense ratio of 0.84% and management fee of 0.74%. MGTSX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. Thanks to yearly returns of 18.03% over the last five years, MGTSX is an effectively diversified fund with a long reputation of solidly positive performance.
Franklin DynaTech R6 (FDTRX - Free Report) : Expense ratio: 0.5%. Management fee: 0.46%. FDTRX is part of the Sector - Tech mutual fund category that invests in technology and lets investors own a stake in a notoriously volatile sector, but with a much more diversified approach. FDTRX has produced a 16.95% 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.