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MARKETS LIVE BLOG:

STOCKS SLIDE AFTER META'S REALITY CHECK, DOWNBEAT GDP

Caterpillar sinks 7% after earnings, management sees weakness in Europe, Asia-Pacific

Avoid These 3 Mutual Fund Misfires - January 29, 2020

Zacks Equity Research
·4 min read

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.

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.

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BlackRock Eurofund R (MREFX): 2.01% expense ratio and 0.75% management fee. MREFX is one of many Europe - Equity mutual funds, which are known for investing their assets in stocks based in countries like Great Britain, Germany, France, Italy, and Spain. With a five year after-costs return of 1.85%, you're for the most part paying more in charges than returns.

AB Allocation Market Real Return 1 (AMTOX). Expense ratio: 1.09%. Management fee: 0.75%. Over the last 5 years, this fund has generated annual returns of 0.95%.

Eaton Vance Short Duration Government Income C (ECLDX) - 1.41% expense ratio, 0.5% management fee. ECLDX is a Government Mortgage - Short fund, focusing on the mortgage-backed securities (MBS) market and securities that have less than three years until maturity. ECLDX has generated annual returns of 0.87% over the last five years. Ouch!

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.

Baron Partners Fund Retail (BPTRX): Expense ratio: 1.33%. Management fee: 1%. BPTRX 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. This fund has achieved five-year annual returns of an astounding 13.6%.

MFS Mass Investors Growth Stock I (MGTIX): Expense ratio: 0.48%. Management fee: 0.33%. MGTIX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. MGTIX has managed to produce a robust 14.26% over the last five years.

AB Small Cap Growth I (QUAIX) has an expense ratio of 0.9% and management fee of 0.75%. QUAIX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With annual returns of 14.05% over the last five years, this fund is a well-diversified fund with a long track record of success.

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.

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Get Your Free (BPTRX): Fund Analysis Report
 
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