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Avoid These 3 Mutual Fund Misfires - November 14, 2019

Zacks Equity Research

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.

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.

Intrepid Capital Fund Investor (ICMBX): 1.4% expense ratio and 1% management fee. ICMBX is an Allocation Balanced mutual fund. Allocation Balanced funds look to invest across asset types, like stocks, bonds, and cash, and including precious metals or commodities is not unusual; these funds are mostly categorized by their respective asset allocation. With a five year after-costs return of 0.79%, you're for the most part paying more in charges than returns.

Aberdeen International Equity Institutional (GIGIX). Expense ratio: 1.14%. Management fee: 1%. Over the last 5 years, this fund has generated annual returns of 0.38%.

Glenmede Long/Short Fund (GTAPX): This fund has an expense ratio of 2.46% and management fee of 1.2%. GTAPX is a Long Short - Equity mutual fund, which look at taking long positions in equities that are expected to appreciate and short positions in equities that are projected to decline, but overall, hope to minimize their market exposure. With an annual average return of 2.32% over the last five years, the only thing absolute about this absolute return fund is that it absolutely deserves to be on our "worst offender" list.

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.

VALIC Company I Large Cap Growth Fund (VLCGX): Expense ratio: 0.75%. Management fee: 0.64%. VLCGX is a Large Cap Growth option; these mutual funds purchase stakes in numerous large U.S. companies that are expected to develop and grow at a faster rate than other large-cap stocks. This fund has achieved five-year annual returns of an astounding 12.68%.

Janus Henderson Enterprise D (JANEX): Expense ratio: 0.81%. Management fee: 0.64%. JANEX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. JANEX has managed to produce a robust 14.8% over the last five years.

JPMorgan Small Cap Growth Fund A (PGSGX) has an expense ratio of 1.24% and management fee of 0.65%. PGSGX is a Small Cap Growth mutual fund and tends to feature small companies in up-and-coming industries and markets. With annual returns of 12.36% over the last five years, this fund is a well-diversified fund with a long track record of success.

Bottom Line

Along these lines, there you have it - if your financial guide has you put your money into any of our "Mutual Fund Misfires of the Market," there is a strong likelihood that they are either dormant at the worst possible time, inept, or (in all probability) filling their pockets with high fee commissions at the cost of your financial objectives.

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