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.

High fees plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.

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.

Franklin Real Return R6 (FRRRX): This fund has an expense ratio of 0.48% and a management fee of 0.63%. Without even doing any in-depth analysis, just the fact that you are paying more in fees than you're earning in returns is reason enough not to invest. FRRRX is a Government - Bonds option, and holds securities issued by the U.S. federal government in their portfolios; these funds focus across the curve, meaning the yields and interest rate sensitivity will vary. The fund has lagged performance-wise, so perhaps a simpler index future investing strategy might be more effective.

Wells Fargo Absolute Return A (WARAX): 1.53% expense ratio, 0.72%. WARAX 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 yearly returns of 0.07% over the most recent five years. Another fund liable of having investors pay more in charges than what they receive in return.

Alger International Growth C (ALGCX) - 2.21% expense ratio, 0.71% 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

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.

T. Rowe Price Science & Technology Adviser (PASTX): 1.06% expense ratio and 0.64% management fee. PASTX is a Sector - Tech mutual fund, allowing investors to own a stake in a notoriously volatile sector with a much more diversified approach. With an annual return of 15.53% over the last five years, this fund is a winner.

MFS Research R5 (MFRKX) is a stand out fund. MFRKX 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 five-year annualized performance of 11.1% and expense ratio of 0.48%, this diversified fund is an attractive buy with a strong history of performance.

Janus Henderson Enterprise S (JGRTX) has an expense ratio of 1.16% and management fee of 0.64%. JGRTX is a Mid Cap Growth mutual fund. These mutual funds choose companies with a stock market valuation between $2 billion and $10 billion. With yearly returns of 14.41% over the last five years, this fund is well-diversified with a long reputation of salutary performance.

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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Excerpt from:
Are You Invested In These 3 Mutual Fund Misfires? - December 02, 2019 - Yahoo Finance