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.
American Century Multi Asset Real Return A (ASIZX): Expense ratio: 1.89%. Management fee: 0.88%. After expenses, the 5 year return is 1.14%, meaning your fees are far higher than the fund's returns.
PSI Stategic Growth Fund A (FXSAX): 1.9% expense ratio, 1%. FXSAX is classified as an Allocation Balanced fund, which seeks to invest in a balance of asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual. This fund has yearly returns of -1.47% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
EuroPac International Bond Fund A (EPIBX) - 1.15% expense ratio, 0.6% management fee. This fund has yielded yearly returns of -2.68% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
Principal Mid Cap R5 (PMBPX) is a winner, with an expense ratio of just 0.85% and a five-year annualized return track record of 13.3%.
Oppenheimer Discovery I (ODIIX) has an expense ratio of 0.67% and management fee of 0.63%. ODIIX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With annual returns of 11.48% over the last five years, this is a well-diversified fund with a long track record of success.
Putnam Growth Opportunities R (PGORX) is an attractive fund with a five-year annualized return of 13.21% and an expense ratio of just 1.28%. PGORX 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.
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.
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