Mutual Fund Misfires of the Market - February 25, 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.

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.

RBC Emerging Markets Small Cap Equity I (RESIX): 1.45% expense ratio and 1.25% management fee. RESIX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. With a five year after-expenses return of 0.93%, you're mostly paying more in fees than returns.

Invesco Global Mkt Neutral R6 (MKNSX). Expense ratio: 1.24%. Management fee: 1.25%. Over the last 5 years, this fund has generated annual returns of -3.75%.

Iron Horse Fund I (IRHIX) - 1.7% expense ratio, 1.25% management fee. This fund has yielded yearly returns of 1.6% 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.

Principal Large Cap Growth I R6 (PLCGX) is a fund that has an expense ratio of 0.59%, and a management fee of 0.6%. PLCGX 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 15.39% over the last five years, this fund clearly wins.

William Blair International Leaders Institutional (WILJX) has an expense ratio of 0.91% and management fee of 0.85%. WILJX 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 10.09% over the last five years, this is a well-diversified fund with a long track record of success.

Manning & Napier Disciplined Value S (MDFSX): Expense ratio: 0.82%. Management fee: 0.3%. MDFSX is a Large Cap Value mutual fund, which invests in stocks with a market cap of $10 billion of more, but whose share prices do not reflect their intrinsic value. MDFSX has produced a 10.7% over the last five years.

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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Get Your FREE Guide Now Get Your Free (MDFSX): Fund Analysis Report Get Your Free (IRHIX): Fund Analysis Report Get Your Free (PLCGX): Fund Analysis Report Get Your Free (RESIX): Fund Analysis Report Get Your Free (WILJX): Fund Analysis Report Get Your Free (MKNSX): Fund Analysis Report To read this article on Zacks.com click here. Zacks Investment Research