We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - April 02, 2020
Read MoreHide Full Article
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.
High fees plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
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.
Touchstone Ultra Short Duration Fixed Income Y (TSYYX - Free Report) : Expense ratio: 0.44%. Management fee: 0.25%. After expenses, the 5 year return is -0.19%, meaning your fees are far higher than the fund's returns.
Transamerica Emerging Markets Equity A : 1.57% expense ratio, 0.92% management fee. AEMTX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has an annual returns of 1.4% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Leader Short-Term Bond Fund A : Expense ratio: 1.85%. Management fee: 0.75%. LCAMX 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 annual returns of just -0.24%, 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.
AQR TM Large Cap Momentum Style I is a winner, with an expense ratio of just 0.4% and a five-year annualized return track record of 10.32%.
JPMorgan Equity Income Fund R6 (OIEJX - Free Report) : Expense ratio: 0.46%. Management fee: 0.4%. OIEJX 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. OIEJX has managed to produce a robust 10.04% over the last five years.
MFS Global New Discovery R4 (GLNMX - Free Report) : Expense ratio: 1.26%. Management fee: 0.98%. GLNMX 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. GLNMX has produced a 11.19% 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.
Image: Bigstock
Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - April 02, 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.
High fees plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
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.
Touchstone Ultra Short Duration Fixed Income Y (TSYYX - Free Report) : Expense ratio: 0.44%. Management fee: 0.25%. After expenses, the 5 year return is -0.19%, meaning your fees are far higher than the fund's returns.
Transamerica Emerging Markets Equity A : 1.57% expense ratio, 0.92% management fee. AEMTX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has an annual returns of 1.4% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Leader Short-Term Bond Fund A : Expense ratio: 1.85%. Management fee: 0.75%. LCAMX 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 annual returns of just -0.24%, 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.
AQR TM Large Cap Momentum Style I is a winner, with an expense ratio of just 0.4% and a five-year annualized return track record of 10.32%.
JPMorgan Equity Income Fund R6 (OIEJX - Free Report) : Expense ratio: 0.46%. Management fee: 0.4%. OIEJX 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. OIEJX has managed to produce a robust 10.04% over the last five years.
MFS Global New Discovery R4 (GLNMX - Free Report) : Expense ratio: 1.26%. Management fee: 0.98%. GLNMX 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. GLNMX has produced a 11.19% 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.