3 Mutual Fund Misfires To Avoid In Your Retirement Portfolio - October 11, 2019

Published 10/11/2019, 07:18 AM
Updated 10/23/2024, 11:45 AM

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.

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.

TCW International Small Cap I (TGICX): Expense ratio: 1.12%. Management fee: 0.75%. After expenses, the 5 year return is -0.09%, meaning your fees are far higher than the fund's returns.

Hartford Emerging Market Local Debt R3 (HLDRX): HLDRX is an International Bond - Emerging mutual fund, which focus on fixed income securities from emerging nations around the globe. HLDRX offers an expense ratio of 1.13% and annual returns of -0.83% over the last five years. Even if this fund can be positioned as a hedge during the recent bull-market, paying more in fees than returns over the long-term should never be an acceptable result.

Lord Abbett Inflation Focused R2 (LIFQX) - 1.1% expense ratio, 0.3% management fee. This fund has yielded yearly returns of -0.9% 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.

Principal Blue Chip Fund I (PBCKX) is a fund that has an expense ratio of 0.66%, and a management fee of 0.66%. PBCKX 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 yearly returns of 14.97% over the last five years, this fund clearly wins.

JPMorgan (NYSE:JPM) Small Cap Growth Fund A (PGSGX) is a stand out fund. PGSGX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With five-year annualized performance of 11.95% and expense ratio of 1.24%, this diversified fund is an attractive buy with a strong history of performance.

AB Small Cap Growth A (QUASX) is an attractive fund with a five-year annualized return of 11.1% and an expense ratio of just 1.13%. QUASX is a Small Cap Blend mutual fund, allowing investors a way to diversify their funds among various types of small-cap stocks.

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.

If you have concerns or any doubts about your investment advisor, read our just-released report:

4 Warning Signs That Your Advisor Might be Sabotaging Your Financial Future


This report can help you avoid the costly mistake of picking or sticking with the wrong investment advisor. Click here for free report>>

Get Your Free (PBCKX): Fund Analysis Report

Get Your Free (LIFQX): Fund Analysis Report

Get Your Free (HLDRX): Fund Analysis Report

Get Your Free (TGICX): Fund Analysis Report

Get Your Free (QUASX): Fund Analysis Report

Get Your Free (PGSGX): Fund Analysis Report

Original post

Zacks Investment Research

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