Mutual Fund Misfires Of The Market - March 06, 2020

Does your current advisor have your money invested in these "Mutual Fund Misfires of the Market" that charge high fees for low returns? If so, it may be time for a new 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.

Janus Henderson Diversified Alternatives T (JDATX): Expense ratio: 1.29%. Management fee: 1%. After expenses, the 5 year return is 0.48%, meaning your fees are far higher than the fund's returns.

Ascendant Deep Value Convertibles C (AEQCX): 2.87% expense ratio, 1.15%. AEQCX 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. This fund has yearly returns of -0.19% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.

Hartford Quality Bond Fund C (HQBCX): Expense ratio: 1.56%. Management fee: 0.4%. HQBCX is classified in Investment Grade Bond - Intermediate fund category; these funds target the middle section of the curve, typically by investing in bonds that mature in more than three years but less than 15 years. With annual returns of just 1.5%, 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.

Brown Advisory Flexible Equity Institutional (BAFFX) is a fund that has an expense ratio of 0.57%, and a management fee of 0.44%. BAFFX 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 yearly returns of 11.66% over the last five years, this fund clearly wins.

Fidelity Advisor Stock Select Allocation Cap Institutional (FBRNX): Expense ratio: 0.69%. Management fee: 0.49%. FBRNX 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. FBRNX has managed to produce a robust 10.6% over the last five years.

Dreyfus/Boston Small/Mid-Cap Growth Y (DBMYX) has an expense ratio of 0.64% and management fee of 0.6%. DBMYX 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 annual returns of 13.55% 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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Zacks Investment Research