Does Your Retirement Portfolio Hold These 3 Mutual Fund Misfires? - November 15, 2019
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.
How can you tell a good mutual fund from a bad one? It's pretty basic: If the fund has high fees and performs poorly, it's not good. Of course, there's a range - but when a mutual fund earns a Zacks Rank of #5 (Strong Sell) that means it's among the worst of roughly 19,000 funds we rate each day.
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.
John Hancock2 International Value NAV (JHVIX): 0.86% expense ratio and 0.8% management fee. JHVIX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. With a five year after-costs return of -0.95%, you're for the most part paying more in charges than returns.
Hartford Global Real Asset Y (HRLYX): HRLYX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. HRLYX offers an expense ratio of 0.9% and annual returns of -1.51% 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.
Catalyst/SMH Total Return Income A (TRIFX): Expense ratio: 1.57%. Management fee: 1%. TRIFX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation. With annual returns of just 0.15%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
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.
Columbia Global Equity Fund R5 (RGERX): Expense ratio: 1%. Management fee: 0.87%. RGERX is a Global - Equity mutual fund investing in bigger markets like the U.S., Europe, and Japan; these kinds of funds aren't limited by geography. This fund has achieved five-year annual returns of an astounding 10.64%.
Victory Sycamore Small Company Opportunity R (GOGFX) is a stand out fund. GOGFX is a Small Cap Value mutual fund option, which typically invest in companies with market caps under $2 billion. With five-year annualized performance of 10.9% and expense ratio of 1.46%, this diversified fund is an attractive buy with a strong history of performance.
Janus Henderson Global Technology A (JATAX) has an expense ratio of 1.02% and management fee of 0.64%. With a much more diversified approach, JATAX--part of the Sector - Tech mutual fund category--gives investors a way to own a stake in the notoriously risky tech sector. With yearly returns of 17.24% over the last five years, this fund is well-diversified with a long reputation of salutary performance.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
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