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 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.
Snow Capital Small Cap Value Institutional (SNWIX): 1.25% expense ratio and 0.95% management fee. SNWIX is a Small Cap Value fund, and these funds are known for investing in companies with market caps under $2 billion. With a five year after-expenses return of 0.39%, you’re mostly paying more in fees than returns.
Templeton Frontier Markets C (FFRMX): 2.71% expense ratio, 1.4%. FFRMX is a Non US – Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. This fund has yearly returns of -3.98% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.
Invesco Global Mkt Neutral Fd Cl Y (MKNYX) – 1.24% expense ratio, 0.95% management fee. This fund has yielded yearly returns of -3.81% 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.
Sarofim Equity Fund (SRFMX): Expense ratio: 0.7%. Management fee: 0.5%. SRFMX 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. This fund has achieved five-year annual returns of an astounding 10.34%.
JPMorgan Large Cap Growth R6 (JLGMX) has an expense ratio of 0.44% and management fee of 0.45%. JLGMX is a part of the Large Cap Growth mutual fund category, which invest in many large U.S. companies that are expected to grow much faster compared to other large-cap stocks. Thanks to yearly returns of 15.52% over the last five years, JLGMX is an effectively diversified fund with a long reputation of solidly positive performance.
Columbia Acorn European Adv (CLOFX) has an expense ratio of 1.19% and management fee of 1.16%. CLOFX is a Non US – Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With annual returns of 10.74% 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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