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.
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.
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.
CMG Mauldin Solutions A (GEFAX): Expense ratio: 1.73%. Management fee: 1.05%. After expenses, the 5 year return is 0.43%, meaning your fees are far higher than the fund's returns.
Eagle MLP Strategy C (EGLCX): 2.4% expense ratio, 1.25%. EGLCX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. This fund has yearly returns of -9.54% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Templeton Frontier Markets R6 (FFMRX) - 1.54% expense ratio, 1.4% management fee. This fund has yielded yearly returns of -2.83% in the course of the last five years. Too bad!
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.
American Funds Washington Mutual Investors 529E (CWMEX): 0.87% expense ratio and 0.23% management fee. CWMEX is a Large Cap Value mutual fund, which invests in stocks with a market cap of $10 billion of more, but whose share prices do not reflect their intrinsic value. With an annual return of 10.26% over the last five years, this fund is a winner.
Fidelity Advisor Series Equity Gr (FMFMX) is a stand out fund. FMFMX 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. With five-year annualized performance of 14.8% and expense ratio of 0.01%, this diversified fund is an attractive buy with a strong history of performance.
Nuance Mid Cap Value Fund Investor (NMAVX) is an attractive fund with a five-year annualized return of 10.51% and an expense ratio of just 1.18%. NMAVX is a Mid Cap Value mutual funds that aims to target medium-sized companies that possess strong value and income opportunities for investors.
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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