Advertisement
Singapore markets open in 7 hours 50 minutes

  • Straits Times Index

    3,287.75
    -5.38 (-0.16%)
     

  • S&P 500

    5,033.47
    -38.16 (-0.75%)
     

  • Dow

    38,009.15
    -451.77 (-1.17%)
     

  • Nasdaq

    15,546.67
    -166.08 (-1.06%)
     

  • Bitcoin USD

    64,716.64
    -89.42 (-0.14%)
     

  • CMC Crypto 200

    1,389.95
    +7.38 (+0.53%)
     

  • FTSE 100

    8,078.86
    +38.48 (+0.48%)
     

  • Gold

    2,341.50
    +3.10 (+0.13%)
     

  • Crude Oil

    82.46
    -0.35 (-0.42%)
     

  • 10-Yr Bond

    4.6960
    +0.0440 (+0.95%)
     

  • Nikkei

    37,628.48
    -831.60 (-2.16%)
     

  • Hang Seng

    17,284.54
    +83.27 (+0.48%)
     

  • FTSE Bursa Malaysia

    1,569.25
    -2.23 (-0.14%)
     

  • Jakarta Composite Index

    7,155.29
    -19.24 (-0.27%)
     

  • PSE Index

    6,574.88
    +2.13 (+0.03%)
     

Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - January 20, 2020

Zacks Equity Research

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.

First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.

3 Mutual Fund Misfires

Now, let's take a look at three market misfires.

ADVERTISEMENT

Catalyst Small Cap Insider Buy C (CTVCX): Expense ratio: 2.52%. Management fee: 1.25%. After expenses, the 5 year return is -3.32%, meaning your fees are far higher than the fund's returns.

Sierra Core Retirement A (SIRAX): 1.73% expense ratio, 1.25%. SIRAX is an Allocation Balanced mutual fund. Allocation Balanced funds look to invest across asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation. This fund has yearly returns of 1.2% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.

Ivy Natural Resources E (IGNEX): This fund has an expense ratio of 1.27% and management fee of 0.85%. IGNEX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. With an annual average return of -3.88% 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.

Franklin International Growth R6 (FILRX) is a fund that has an expense ratio of 0.66%, and a management fee of 0.75%. FILRX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With yearly returns of 10.61% over the last five years, this fund clearly wins.

Fidelity Series Blue Chip Growth (FSBDX): Expense ratio: 0.02%. Management fee: 0%. FSBDX 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. FSBDX has managed to produce a robust 15.52% over the last five years.

Dreyfus/Boston Small/Mid-Cap Growth Y (DBMYX) is an attractive fund with a five-year annualized return of 13.55% and an expense ratio of just 0.64%. DBMYX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers.

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 (DBMYX): Fund Analysis Report
 
Get Your Free (IGNEX): Fund Analysis Report
 
Get Your Free (SIRAX): Fund Analysis Report
 
Get Your Free (CTVCX): Fund Analysis Report
 
Get Your Free (FSBDX): Fund Analysis Report
 
Get Your Free (FILRX): Fund Analysis Report
 
To read this article on Zacks.com click here.