Are You Invested In These 3 Mutual Fund Misfires? - October 25, 2019

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.

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.

American Funds ST Bond Fund of America 529A (CAAFX): Expense ratio: 0.75%. Management fee: 0.28%. After expenses, the 5 year return is 0.55%, meaning your fees are far higher than the fund's returns.

MassMutual Premier International Equity A (MMIAX). Expense ratio: 1.52%. Management fee: 0.28%. Over the last 5 years, this fund has generated annual returns of 1.42%.

Pioneer Global High Yield Fund C (PGYCX): This fund has an expense ratio of 1.96% and management fee of 0.7%. PGYCX is an International Bond - Developed fund, and these funds funds focus on fixed income securities from developed nations apart from the United States. This usually results in countries like Japan, Germany, the UK, France, and Australia dominating the list of top holdings. With an annual average return of 1.83% 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

Now that you've seen the worst Zacks Ranked mutual funds, let's have a look at some of the highest ranked funds with the lowest fees.

Fidelity Advisor Small Cap Growth A (FCAGX) is a fund that has an expense ratio of 1.32%, and a management fee of 0.81%. FCAGX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With yearly returns of 12.69% over the last five years, this fund clearly wins.

Principal Real Estate Security J (PREJX) is a stand out fund. PREJX is categorized as a Sector - Real Estate mutual fund, which typically invests in various real estate investment trusts (REIT) due to their taxation rules. With five-year annualized performance of 11.39% and expense ratio of 1.14%, this diversified fund is an attractive buy with a strong history of performance.

Janus Henderson Growth & Income A (JDNAX): Expense ratio: 0.95%. Management fee: 0.6%. JDNAX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. JDNAX has produced a 10.14% 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.

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