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 plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
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.
Columbia Disciplined Small Core T (SSCEX): Expense ratio: 1.36%. Management fee: 0.85%. After expenses, the 5 year return is 0.66%, meaning your fees are far higher than the fund's returns.
Templeton Foreign A (TEMFX). Expense ratio: 1.06%. Management fee: 0.85%. Over the last 5 years, this fund has generated annual returns of -1.86%.
Hotchkis and Wiley Mid-Cap Value I (HWMIX) - 1% expense ratio, 0.75% management fee. This fund has yielded yearly returns of 0.04% in the course of the last five years. Too bad!
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.
Scout Small Cap Fund (UMBHX) is a winner, with an expense ratio of just 0.95% and a five-year annualized return track record of 11.12%.
AB Large Cap Growth A (APGAX) has an expense ratio of 0.88% and management fee of 0.51%. APGAX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. Thanks to yearly returns of 13.44% over the last five years, APGAX is an effectively diversified fund with a long reputation of solidly positive performance.
Jensen Quality Growth Fund J (JENSX) has an expense ratio of 0.86% and management fee of 0.49%. JENSX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. With yearly returns of 11.99% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
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.
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 (APGAX): Fund Analysis Report
Get Your Free (HWMIX): Fund Analysis Report
Get Your Free (TEMFX): Fund Analysis Report
Get Your Free (SSCEX): Fund Analysis Report
Get Your Free (JENSX): Fund Analysis Report
Get Your Free (UMBHX): Fund Analysis Report
Original post
Zacks Investment Research