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Are You Invested In These 3 Mutual Fund Misfires? - February 19, 2020

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.

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.

Invesco Global Mkt Neutral Fd Cl Y (MKNYX): 1.24% expense ratio and 0.95% management fee. MKNYX is a Market Neutral - Equity mutual fund. These portfolios usually hold 50% of their securities in a long position, as well as 50% in a short position. With a five year after-expenses return of -3.81%, you're mostly paying more in fees than returns.

Eagle MLP Strategy I (EGLIX): EGLIX is a Sector - Energy mutual fund, which encompasses a wide range of vastly changing and vitally important industries throughout this massive global sector. EGLIX offers an expense ratio of 1.4% and annual returns of -8.66% 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.

James Small Cap A (JASCX): Expense ratio: 1.5%. Management fee: 1.24%. JASCX is a Small Cap Value fund, and these funds are known for investing in companies with market caps under $2 billion. With annual returns of just 0.98%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.

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.

WCM Focused International Growth Fund Investor (WCMRX) is a winner, with an expense ratio of just 1.21% and a five-year annualized return track record of 11.59%.

Fidelity Advisor Stock Select Allocation Cap Institutional (FBRNX) has an expense ratio of 0.69% and management fee of 0.49%. FBRNX 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. Thanks to yearly returns of 10.6% over the last five years, FBRNX is an effectively diversified fund with a long reputation of solidly positive performance.

Oppenheimer Gold & Special Mineral I (OGMIX) is an attractive fund with a five-year annualized return of 11.71% and an expense ratio of just 0.75%. OGMIX is classified as a Sector - Precious Metal fund, and these mutual funds invest in stocks with a focus on the mining and production of precious metals like gold, silver, platinum, and palladium.

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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