Advertisement
Canada markets closed

  • S&P/TSX

    21,873.72
    -138.00 (-0.63%)
     

  • S&P 500

    5,071.63
    +1.08 (+0.02%)
     

  • DOW

    38,460.92
    -42.77 (-0.11%)
     

  • CAD/USD

    0.7297
    -0.0024 (-0.32%)
     

  • CRUDE OIL

    82.81
    0.00 (0.00%)
     

  • Bitcoin CAD

    87,763.02
    -3,259.96 (-3.58%)
     

  • CMC Crypto 200

    1,386.78
    -37.32 (-2.62%)
     

  • GOLD FUTURES

    2,329.00
    -9.40 (-0.40%)
     

  • RUSSELL 2000

    1,995.43
    -7.22 (-0.36%)
     

  • 10-Yr Bond

    4.6520
    +0.0540 (+1.17%)
     

  • NASDAQ futures

    17,472.25
    -192.25 (-1.09%)
     

  • VOLATILITY

    15.97
    +0.28 (+1.78%)
     

  • FTSE

    8,040.38
    -4.43 (-0.06%)
     

  • NIKKEI 225

    38,460.08
    +907.92 (+2.42%)
     

  • CAD/EUR

    0.6818
    -0.0018 (-0.26%)
     

Mutual Fund Misfires of the Market - November 13, 2019

Zacks Equity Research

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 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.

ADVERTISEMENT

JPMorgan Research Market Neutral I (JMNSX): Expense ratio: 3.39%. Management fee: 0.8%. After expenses, the 5 year return is 0.48%, meaning your fees are far higher than the fund's returns.

Sierra Core Retirement C (SIRCX). Expense ratio: 2.48%. Management fee: 0.8%. Over the last 5 years, this fund has generated annual returns of 1.31%.

Third Avenue Real Estate Value Investor (TVRVX) - 1.4% expense ratio, 0.9% management fee. Sector - Real Estate funds like TVRVX are known to invest in real estate investment trusts (REITs). A popular income vehicle thanks to its taxation rules, a REIT is required to pay out at least 90% of its income annually to avoid double taxation. TVRVX has generated annual returns of 1.08% over the last five years. Ouch!

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.

Fidelity Series Opportunistic Insights (FVWSX) is a fund that has an expense ratio of 0.03%, and a management fee of 0%. FVWSX 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. With yearly returns of 11.78% over the last five years, this fund clearly wins.

Akre Focus Institutional (AKRIX) has an expense ratio of 1.05% and management fee of 0.9%. AKRIX 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. Thanks to yearly returns of 16.65% over the last five years, AKRIX is an effectively diversified fund with a long reputation of solidly positive performance.

Nuveen Santa Barbara Dividend Growth Fund R6 (NSBFX) is an attractive fund with a five-year annualized return of 10.49% and an expense ratio of just 0.65%. NSBFX 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.

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.


This report will help you steer clear of the most common mistakes, like trying to time the market, lack of diversification in your portfolio, and many more. Get Your FREE Guide Now
 
Get Your Free (AKRIX): Fund Analysis Report
 
Get Your Free (TVRVX): Fund Analysis Report
 
Get Your Free (SIRCX): Fund Analysis Report
 
Get Your Free (JMNSX): Fund Analysis Report
 
Get Your Free (NSBFX): Fund Analysis Report
 
Get Your Free (FVWSX): Fund Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research