Are You Invested In These 3 Mutual Fund Misfires? - January 06, 2020

You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.

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.

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.

Fidelity Advisor Event Driven Opportunities C (FATJX): Expense ratio: 2.28%. Management fee: 0.8%. After expenses, the 5 year return is 1.72%, meaning your fees are far higher than the fund's returns.

Invesco Global Mkt Neutral Fd Cl A (MKNAX). Expense ratio: 1.49%. Management fee: 0.8%. Over the last 5 years, this fund has generated annual returns of -4.93%.

Wells Fargo Asset Allocation C (EACFX) - 2.06% expense ratio, 0.27% management fee. This fund has yielded yearly returns of 1.88% in the course of the last five years. Too bad!

3 Top Ranked Mutual Funds

Since you've seen the most noticeably lowest Zacks Ranked mutual funds, how about we take a look at some of the top ranked mutual funds with the least fees.

AB Discovery Growth K (CHCKX) is a fund that has an expense ratio of 1.08%, and a management fee of 0.61%. CHCKX 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. With yearly returns of 10.05% over the last five years, this fund clearly wins.

MFS Growth Fund R2 (MEGRX) is a stand out fund. MEGRX 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 five-year annualized performance of 13.93% and expense ratio of 1.16%, this diversified fund is an attractive buy with a strong history of performance.

Cohen & Steers Realty Shares Institutional (CSRIX) has an expense ratio of 0.75% and management fee of 0.75%. CSRIX is categorized as a Sector - Real Estate mutual fund, which typically invests in various real estate investment trusts (REIT) due to their taxation rules. With yearly returns of 11.61% 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.

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