Mutual Fund Misfires of the Market - October 16, 2019

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 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.

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.

Intrepid Capital Fund Institutional (ICMVX): 1.15% expense ratio and 1% management fee. ICMVX 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. With a five year after-expenses return of 1.05%, you're mostly paying more in fees than returns.

Templeton Global Balanced Fund C (FCGBX). Expense ratio: 1.95%. Management fee: 1%. Over the last 5 years, this fund has generated annual returns of 0.32%.

Sit Developing Markets Growth Fund (SDMGX): Expense ratio: 1.4%. Management fee: 2%. SDMGX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. With annual returns of just 1.33%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.

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.

Commerce Mid Cap Growth (CFAGX) is a winner, with an expense ratio of just 0.81% and a five-year annualized return track record of 12.75%.

ClearBridge Dividend Strategy Y (SOPYX) has an expense ratio of 0.73% and management fee of 0.65%. SOPYX 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. With annual returns of 10.36% over the last five years, this is a well-diversified fund with a long track record of success.

BMO Low Volatility Equity I (MLVEX) has an expense ratio of 0.65% and management fee of 0.5%. MLVEX is part of the Large Cap Blend section, and these mutual funds most often invest in firms with a market capitalization of $10 billion or more. By investing in bigger companies, these funds offer more stability, and are often well-suited for investors with a "buy and hold" mindset. With yearly returns of 10.13% over the last five years, this fund is well-diversified with a long reputation of salutary performance.

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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