Advertisement
Canada markets open in 6 hours 35 minutes

  • S&P/TSX

    21,885.38
    +11.66 (+0.05%)
     

  • S&P 500

    5,048.42
    -23.21 (-0.46%)
     

  • DOW

    38,085.80
    -375.12 (-0.98%)
     

  • CAD/USD

    0.7332
    +0.0009 (+0.12%)
     

  • CRUDE OIL

    83.92
    +0.35 (+0.42%)
     

  • Bitcoin CAD

    87,884.47
    +257.89 (+0.29%)
     

  • CMC Crypto 200

    1,389.08
    -7.46 (-0.53%)
     

  • GOLD FUTURES

    2,353.10
    +10.60 (+0.45%)
     

  • RUSSELL 2000

    1,981.12
    -14.31 (-0.72%)
     

  • 10-Yr Bond

    4.7060
    +0.0540 (+1.16%)
     

  • NASDAQ futures

    17,789.75
    +222.25 (+1.27%)
     

  • VOLATILITY

    15.37
    -0.60 (-3.76%)
     

  • FTSE

    8,078.86
    +38.48 (+0.48%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • CAD/EUR

    0.6827
    +0.0006 (+0.09%)
     

Avoid These 3 Mutual Fund Misfires - October 22, 2019

Zacks Equity Research

If your advisor has you invested in any of these "Mutual Fund Misfires of the Market" with high fees and low returns, you need to rethink 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.

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.

ADVERTISEMENT

Voya GNMA Income C (LEGNX): This fund has an expense ratio of 1.7% and a management fee of 0.56%. 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. LEGNX is part of the Government Mortgage - Intermediate fund section. Government Mortgage - Intermediate funds focus on the mortgage-backed security (MBS) market and securities that usually have at least three years to maturity but less than 10. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.

Russell Emerging Markets C (REMCX). Expense ratio: 2.41%. Management fee: 0.56%. Over the last 5 years, this fund has generated annual returns of 0.4%.

Rydex Energy Services Investor (RYVIX): This fund has an expense ratio of 1.46% and management fee of 0.85%. RYVIX 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. With an annual average return of -24.83% 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.

Hartford Core Equity C (HGICX) is a winner, with an expense ratio of just 1.48% and a five-year annualized return track record of 11.15%.

Eagle Mid Cap Growth A (HAGAX) has an expense ratio of 1.05% and management fee of 0.52%. HAGAX is a Mid Cap Growth mutual fund. Mid Cap Growth funds pick stocks--usually companies with a market cap between $2 billion and $10 billion--that demonstrate extensive growth opportunities for investors compared to their peers. With annual returns of 10.41% over the last five years, this is a well-diversified fund with a long track record of success.

Putnam Growth Opportunities C (POGCX): Expense ratio: 0.87%. Management fee: 0.45%. POGCX 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. POGCX has produced a 12.64% over the last five years.

Bottom Line

Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.

If you have concerns or any doubts about your investment advisor, read our just-released report:

4 Warning Signs That Your Advisor Might be Sabotaging Your Financial Future


This report can help you avoid the costly mistake of picking or sticking with the wrong investment advisor. Click here for free report>>
 
Get Your Free (HAGAX): Fund Analysis Report
 
Get Your Free (RYVIX): Fund Analysis Report
 
Get Your Free (REMCX): Fund Analysis Report
 
Get Your Free (LEGNX): Fund Analysis Report
 
Get Your Free (POGCX): Fund Analysis Report
 
Get Your Free (HGICX): Fund Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research