Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - March 24, 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 plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.

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.

Harding Loevner Front Emerging Markets Investor (HLMOX): Expense ratio: 2%. Management fee: 1.35%. After expenses, the 5 year return is -1.02%, meaning your fees are far higher than the fund's returns.

Hartford Global Real Asset R3 (HRLRX): HRLRX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. HRLRX offers an expense ratio of 1.5% and annual returns of 1.43% 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.

BlackRock (NYSE:BLK) Eurofund C (MCEFX) - 2.14% expense ratio, 0.75% management fee. This fund has yielded yearly returns of 1.56% 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.

William Blair International Leaders Institutional (WILJX): 0.91% expense ratio and 0.85% management fee. WILJX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With an annual return of 10.09% over the last five years, this fund is a winner.

Capital Group US Equity (CUSEX): Expense ratio: 0.42%. Management fee: 0.43%. CUSEX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. CUSEX has managed to produce a robust 11.63% over the last five years.

MSIF Global Opportunity Portfolio I (MGGIX) has an expense ratio of 0.92% and management fee of 0.74%. MGGIX is a Global - Equity mutual fund. These funds invest in large markets like the U.S., Europe, and Japan, and operate with very few geographical limitations. With annual returns of 17.99% over the last five years, this fund is a well-diversified fund with a long track record of success.

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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Get Your Free (CUSEX): Fund Analysis Report

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Zacks Investment Research