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.
Goldman Sachs N-11 Equity Fund C (GSYCX): 2.48% expense ratio and 1.13% management fee. GSYCX 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-expenses return of -3.52%, you're mostly paying more in fees than returns.
AQR Multi Strategy Alternative N (ASANX): 2.23% expense ratio, 1.75% management fee. ASANX 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. This fund has an annual returns of -2.9% over the last five years. Another fund guilty of having investors pay more in fees than returns.
Sirius S&P Strategic Large Cap Allc (SSPLX) - 1.9% expense ratio, 1.2% management fee. This fund has yielded yearly returns of 0.32% in the course of the last five years. Too bad!
3 Top Ranked Mutual Funds
There you have it: some prime examples of truly bad mutual funds. In contrast, here are a few funds that have achieved high Zacks Ranks and have low fees.
Columbia Select Large Cap Growth R4 (CSRRX) is a fund that has an expense ratio of 0.86%, and a management fee of 0.66%. CSRRX 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. With yearly returns of 11.78% over the last five years, this fund clearly wins.
MSIF Global Quality Portfolio A (MGQAX) has an expense ratio of 1.24% and management fee of 0.7%. MGQAX 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. With annual returns of 10.47% over the last five years, this is a well-diversified fund with a long track record of success.
Royce International Premier Fund Investment (RIPNX): Expense ratio: 1.13%. Management fee: 1%. RIPNX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. RIPNX has produced a 13.03% over the last five years.
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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