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.
Optimum Small Mid-Cap Value C (OCSVX): 2.21% expense ratio and 0.95% management fee. OCSVX is a Small Cap Value fund, and these funds are known for investing in companies with market caps under $2 billion. With a five year after-costs return of 1.86%, you're for the most part paying more in charges than returns.
Russell Emerging Markets E (REMEX): 1.66% expense ratio, 1.14%. REMEX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has yearly returns of 1.15% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Rydex Energy Services H (RYVAX): Expense ratio: 1.7%. Management fee: 0.85%. RYVAX 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 annual returns of just -25.06%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
Hartford Core Equity A (HAIAX) is a winner, with an expense ratio of just 0.73% and a five-year annualized return track record of 10.78%.
Neuberger Berman Small Cap Growth Trust (NBMOX) has an expense ratio of 1.3% and management fee of 1.25%. NBMOX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. Thanks to yearly returns of 12.36% over the last five years, NBMOX is an effectively diversified fund with a long reputation of solidly positive performance.
Virtus KAR Small-Cap Core I (PKSFX) is an attractive fund with a five-year annualized return of 17.9% and an expense ratio of just 1.02%. PKSFX is a Small Cap Blend mutual fund, allowing investors a way to diversify their funds among various types of small-cap stocks.
Bottom Line
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.
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
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Original post
Zacks Investment Research