You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
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.
Hartford Global Real Asset A (HRLAX): This fund has an expense ratio of 1.25% and a management fee of 0.85%. 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. HRLAX 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. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.
Clearbridge International Value IS (LSIUX): LSIUX is a Non US - Equity fund. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels. LSIUX offers an expense ratio of 0.8% and annual returns of -1.82% 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.
Beck Mack & Oliver Partners Fund (BMPEX) - 1% expense ratio, 1% management fee. This fund has yielded yearly returns of 0.33% in the course of the last five years. Too bad!
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.
USAA Science & Technology Fund Adviser (USTCX) is a winner, with an expense ratio of just 1.29% and a five-year annualized return track record of 15.09%.
MSIF Global Opportunity Portfolio A (MGGPX): Expense ratio: 1.23%. Management fee: 0.74%. MGGPX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. MGGPX has managed to produce a robust 15.32% over the last five years.
VY T. Rowe Price Diversified Mid Cap Growth S2 (IAXTX) is an attractive fund with a five-year annualized return of 12.06% and an expense ratio of just 1.17%. IAXTX is a Mid Cap Blend mutual fund. These funds usually seek a stock portfolio of various size and style, which allows for diversification when the focus is on companies with a market cap in the range of $2 billion to $10 billion.
So, there you have it - if your advisor has you invested in any of our "Mutual Fund Misfires of the Market," there is a good probability that they are either asleep at the wheel, incompetent, or (most likely) lining their pockets with high fee commissions at your financial expense.
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