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Your 401(k) May Soon Have Fewer Investment Choices But That’s a Good Thing – Yahoo Finance

Posted: November 14, 2019 at 2:44 pm


Your companys retirement plan may soon shrink its investment menu. While few of us like the idea of having fewer choices in life, the move could actually turn out to benefit most investors.

For millions of Americans, their employers 401(k) is their main retirement savings vehicle. But experts have long complained that plans, which typically offer several dozen investment choices, can intimidate and ultimately turn off workers with their complexity and cost.

The good news is plans have been getting simpler and cheaper. Most plans now automatically enroll workers in funds that offer an age-appropriate mix of stocks and bonds. New evidence suggests that firms are streamlining their la carte investment menus, too.

Financial firms that help employers design 401(k) plans say they are choosing fewer investment managers to include in 401(k) fund rosters than in the past, according to results of annual study of 180 such advisers by Sway Research LLC.

The survey, first reported by trade publication Investment News, targeted consultants who typically work with mid-sized 401(k)s with $10 to $50 million in assets. Roughly half of these advisors agreed or strongly agreed they were working with fewer investment managers. Only 15% about of the advisors disagreed.

So why do investors benefit from fewer options?

Because, the trend is largely driven by 401(k) plans emphasizing passive index mutual funds rather than actively managed ones that aim to pick winning stocks, according to Sway Principal Christopher Brown.

Since index funds are designed to represent broad swaths of the market, like all U.S. stocks or all developed world foreign stocks, investors dont need as many options.

Whats more, the best index funds tend to be the cheapest ones, and those cheapest funds tend to be offered by a few very large investment firms, such as Vanguard, State Street and Dimensional Fund Advisers, who can rely on their giant scale to gain a pricing edge, according to Brown.

While savers might like the idea of a large menu of mutual funds in the abstract, when it comes down to it, most are better sticking with index funds and pocketing the extra cash that their low fees have bought us.

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Your 401(k) May Soon Have Fewer Investment Choices But That's a Good Thing - Yahoo Finance

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November 14th, 2019 at 2:44 pm

Posted in Investment

US is the ‘prime market’ for investment in 2020, UBS Chairman Axel Weber says – CNBC

Posted: at 2:44 pm


The world's largest economy is the "prime market" for investment next year, according to the chairman of Switzerland's largest bank.

His comments come as market participants closely monitor global trade developments after President Donald Trump threatened to "substantially" increase tariffs if China failed to agree to a trade deal.

The U.S. and China have imposed tariffs on billions of dollars' worth of one another's goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

"The U.S. generally when you look at the outlook for growth is more positive than it is for Europe," UBS Chairman Axel Weber told CNBC's Joumanna Bercetchein an exclusive interview at the UBS European Conference in London on Wednesday.

"Trade disputes between China and the U.S. have a much bigger impact on the outlook for China in the negative sense than they have for the United States. It is impacting the U.S. as well but in a less pronounced way."

"So, if you look at for areas of growth and investment, the U.S. is the prime market," Weber said.

Expectations of a so-called "phase one" trade deal between the two economic giants have been rising in recent weeks, supporting stocks and riskier assets.

However, a lack of progress on an agreement has intensified concerns about whether a trade deal will take place at all.

Speaking at the Economic Club of New York on Tuesday, Trump said both sides were "close" to reaching a "phase one" trade deal but did not offer any details on where or when it might be signed.

The U.S. president also repeated an accusation of China "cheating" on trade, though he blamed the situation on past leaders of the world's largest economy.

"The question many clients ask is: So, what about the dollar? Now that the Fed has come down with rates, will the dollar move in the opposite direction?" Weber said.

"Short-term, it might be that there is some slight change but, long term, I think I am very dollar positive. The dollar will continue to be the major currency in the world and will continue to be very strong."

The dollar index was marginally higher on Wednesday, trading at 98.366 against of basket of six major currencies, up almost 0.1% on the day.

The Fed has cut interest rates three times in 2019 in what it has been characterized as a "midcycle adjustment."

The CME FedWatch tool, which reflects trading in fed funds futures, shows market expectations for another rate cut next month are very low, at less than 4%.

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US is the 'prime market' for investment in 2020, UBS Chairman Axel Weber says - CNBC

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November 14th, 2019 at 2:44 pm

Posted in Investment

The Future Of Real Estate Investing: Digital Assets Are Here, Now – Forbes

Posted: at 2:44 pm


Today, blockchain is consistently brought up as the technology catalyzing the Fourth Industrial Revolution. Blockchain and other distributed ledger technologies are currently being developed and implemented by the biggest and smallest of enterprises, financial institutions, central banks and governments around the world.

Some of the most proven use cases include agricultural supply-chain management and food safety, tokenization of real estate assets, foreign exchange transactions, immutable voting, interbank settlements, securing patient data and land registry. And the list goes on.

"Then why haven't I noticed?" you may ask. Blockchain will have reached its tipping point of mainstream acceptance when people are using blockchain without knowing they're using blockchain, once the technical aspects of how it works have faded into the background, when it's simply part of daily life. That said, Big Business is already deeply engaged in leveraging this revolutionary tech, innovating and building the foundational aspects for the new world ahead.

If you're the type of person who might have been surfing the web on a Netscape browser, or you're "hodling" the dotcom bubble stocks you bought at $6 a share, you're the trailblazing type who will be on the cutting edge of this technological revolution as well.

As a blockchain advisor and investor, I find the most compelling personal use cases to be those in which blockchain can make life better, easier, safer, more efficient or all of the above. I am personally invested through my professional work in advancing enterprise blockchain applications in the marketplace and also hold a small portfolio of cryptoassets. Now that we're in the longest bull market in American history since WW2, more investors are becoming disenchanted with equity markets given recent volatility and are seeking out alternative investment options with low correlation to the stock market, to protect their portfolio against potential economic instability.

Enter the digitalization of value. Be it company equity, asset-backed securities, cryptocurrencies or security token offerings (STOs), the age of digital assets is now, and they are real-deal investments, with nearly $1 billon raised through STOs alone in the last 18 months with another $1 billion USD in digitized real estate assets in the pipeline.

Blockchain tech enables companies to generate digital securities called tokens that are remarkably adaptable from a financial-engineering point of view, embedded with data (including regulatory compliance) that used to require substantial human involvement. These alternative financial mechanisms (think coins, tokens, STOs) enable direct investment in commercial real estate assets without the requirement of typically siloed institutional investment opportunities, yet with all of the security of SEC/FINRA regulation. Think fractionalized ownership of high-yield, regulated investment opportunities without having to pay your broker/dealer for transacting the deal on your behalf. This is where the convergence of digitization and disintermediation brings about enormous value for us as individual investors.

I believe we will soon live in a world of decentralized finance where investment is open to all, where we can invest directly into whichever asset class we prefer through blockchain-based offerings, enabling a vastly more liquid, transparent and cost-efficient means of building wealth than we've ever seen.

As this technology continues to impact finance, I expect that the average individual investor will have immensely greater access to asset classes still reserved for the ultra-wealthy and connected. New, transparent, decentralized and proven blockchain investment use cases are very much the FAANG investments of tomorrow, so start doing your due diligence today.

From my perspective as a real estate developer, one of the most compelling blockchain use cases is just that real estate. On a large scale, blockchain is powering the tokenization of commercial real estate equity to offer investors fractionalized yet liquid ownership of unique, high-yield assets.

On a smaller scale, blockchain makes the buying and selling of homes much easier as well, enabling an immensely more efficient home-buying experience. If you've ever bought or sold a home, you know all about how lengthy and tedious the process can be. Blockchain-based real estate agreements are now being initiated and processed through digital real estate brokerages that essentially disintermediate the entire process, enabling home buyers and sellers to transact all parts of the deal peer-to-peer through a smart contract that controls the process securely from start to finish, saving major time and money.

Real estate assets are impeccably well suited for tokenization. I wholeheartedly stand by my previous prediction that "by 2025, the majority of global real estate investments will be issued as tokenized asset offerings (TAOs) and held as cryptoassets, specifically security tokens, just like traditional securities but traded peer-to-peer without financial intermediaries."

In order to get a jump on this digital transformation, I highly recommend taking a course or two on the subject in your spare time. For example, UC Berkeley offers an online primer course on blockchain technology through which you can learn of the latest advances in the space while earning a professional certificate that can help advance your career as well as your investing prowess.

Also, take advantage of your free time to strengthen your fluency in fintech, blockchain, cryptoassets, proptech or whatever space particularly interests you by absorbing the latest research and news. I like to follow sources such as Cointelegraph and seek out the latest reports on these topics by reputable global firms. Deloitte's "2019 Global Blockchain Survey"is a comprehensive source for learning all about today's most promising applications in the space.

There are many opportunities to get involved with other enthusiasts and professionals in this space through local Meetup gatherings focused on blockchain and crypto. A nonprofit foundation focused on a specific field, such as theFoundation for International Real Estate and Blockchain Expertise (FIBREE), of which I am a Regional Chair, can be another resource for knowledge and ideas.

The future of investing is here, so my advice is to learn everything you can and jump into the digital age of real estate investment now, and watch your knowledge, experience and wealth grow while the rest of the pack still pays most of their profits to the intermediaries.

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The Future Of Real Estate Investing: Digital Assets Are Here, Now - Forbes

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November 14th, 2019 at 2:44 pm

Posted in Investment

What AI startups need to achieve before VCs will invest – TechCrunch

Posted: at 2:44 pm


David BlumbergContributor

Funding of artificial intelligence-focused companies reached approximately $9.3 billion in the U.S. in 2018, an amount that will continue to rise as the transformative impact of AI is realized. That said, not every AI startup has what it takes to secure an investment and scale to success.

So, what do venture capitalists look for when considering an investment in an AI company?

What we look for in all startups

Some fundamentals are important in any of our investments, AI or otherwise. First, entrepreneurs need to articulate that they are solving a large and important problem. It may sound strange, but finding the right problem can be more difficult than finding the right solution. Entrepreneurs need to demonstrate that customers will be willing to switch from what theyre currently using and pay for the new solution.

The team must demonstrate their competence in the domain, their functional skills and above all, their persistence and commitment. The best ideas likely wont succeed if the team isnt able to execute. Setting and achieving realistic milestones is a good way to keep operators and investors aligned. Successful entrepreneurs need to show why their solution offers superior value to competitors in the market or, in the minority of cases where there is an unresolved need why theyre in the best position to solve it.

In addition, the team must clearly explain how their technology works, how it differs and is advantageous relative to existing competitors and must explain to investors how that competitive advantage can be sustained.

For AI entrepreneurs, there are additional factors that must be addressed. Why? It is fairly clear that were in the early stages of this burgeoning industry which stands to revolutionize sectors from healthcare to fintech, logistics to transportation and beyond. Standards have not been settled, there is a shortage of personnel, large companies are still struggling with deployment, and much of the talent is concentrated in a few large companies and academic institutions. In addition, there are regulatory challenges that are complex and growing due to the nature of the technologys evolutionary aspect.

Here are five things we like to see AI entrepreneurs demonstrate before making an investment:

Demonstrate mastery over their data and its value: AI needs big data to succeed. There are two models: companies can either help customers add value to their data or build a data business using AI. In either case, startups must demonstrate that the data is reliable, secure and compliant with all regulatory rules. They must also demonstrate that AI is adding value to their own data it must explain something, derive an explanation, identify important trends, optimize or otherwise deliver value.

With the sheer abundance of data available for companies to collect today, its imperative that startups have an agile infrastructure in place that allows them to store, access and analyze this data efficiently. A data-driven startup must become ever more responsive, proactive and consistent over time.

AI entrepreneurs should know that while machine learning can be applied to many problems, it may not always yield accurate predictions in every situation. Models may fail for a variety of reasons, one of which is inadequate, inconsistent or variable data. Successful mastery of the data demonstrates to customers that the data stream is robust, consistent and that the model can adapt if the data sources change.

Entrepreneurs can better address their customer needs if they can demonstrate a fast, efficient way to normalize and label the data using meta tagging and other techniques.

Remember that transparency is a virtue: There is an increased need in certain industries such as financial services to explain to regulators how the sausage is made, so to speak. As a result, entrepreneurs must be able to demonstrate explainability to show how the model arrived at the result (for example, a credit score). This brings us to an additional issue about accounting for bias in models and, here again, the entrepreneur must show the ability to detect and correct bias as soon as they are found.

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What AI startups need to achieve before VCs will invest - TechCrunch

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November 14th, 2019 at 2:44 pm

Posted in Investment

Are winter tires a good investment? – Boston.com

Posted: at 2:44 pm


Q. I have a question about winter driving. Front wheel drive is good in the winter and better with snow tires. What about snow tires on all four wheels versus four all season tires? I guess my real question is, are four snow tires worth the money?

A. Winter tires improve the traction of any vehicle in cold, wintry conditions. In addition to a tread design that is better suited to dig through the snow, the rubber is made of a compound that stays stickier in cold weather and provides better traction even on dry roads. I was once road testing an Audi A6 quattro, and it had summer tires on it. The temperature was cold and there was about one inch of snow on the road. I drove less than a mile slipping and sliding, turned around, and used my own car with winter tires. If you need to be out before the snowplows, buying winter tires is a good investment.

John Paul is AAA Northeasts Car Doctor. He has over 40 years of experience in the automotive business and is an ASE certified master technician. E-mail your car question to jpaul@aaanortheast.com.

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Are winter tires a good investment? - Boston.com

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November 14th, 2019 at 2:44 pm

Posted in Investment

Carrefour Brasil to invest around 2 billion reais per year through 2024 – Reuters

Posted: at 2:44 pm


SAO PAULO, Nov 14 (Reuters) - Carrefour Brasil plans to invest around 2 billion reais ($475 million) in 2020 to push forward its digital transformation and expand brick-and-mortar stores, particularly wholesale and convenience formats, executives said on Thursday.

The local subsidiary of Frances Carrefour SA is likely to maintain this level of capital expenditure until 2024, they said. In 2019, its investments will be around 1.8 billion reais, depending on areas the group may acquire later this year.

Chief Executive Noel Prioux said the group expects economic conditions in Brazil to only improve later in 2020. It will be a recovering year for a stronger economy in 2021, he said.

Carrefour Brasil will keep the expansion pace of its wholesale unit Atacadao at 20 new stores per year but aims to accelerate the openings of convenience stores.

The companys efforts also include offering a wider range of financial products, such as online accounts and loans, to strengthen the already sharp growth of its e-commerce platform.

Carrefour Brasil recently acquired a 49% stake in fintech EWally to introduce a digital bank account to its customers as early as next year, according to Chief Financial Officer, Sbastien Durchon.

$1 = 4.1950 reaisReporting by Gabriela Mello; Editing by Steve Orlofsky

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Carrefour Brasil to invest around 2 billion reais per year through 2024 - Reuters

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November 14th, 2019 at 2:44 pm

Posted in Investment

Bumble Founder Whitney Wolfe Herd Finally Elevated To CEO With New Investment From Blackstone Group – Celebrity Net Worth

Posted: at 2:44 pm


Let's face it, the time is long past due for Bumble founder Whitney Wolfe Herd to occupy the role of CEO in her own company. Now, with the Blackstone Group taking a majority share in the dating app, she will finally get her due. The new investment values the app at $3 billion. As part of the deal, Andrey Andreev, the current CEO and founder of Bumble's parent company MagicLab will sell his stake in Bumble and exit his role as CEO. Wolfe Herd retains her stake.

Whitney Wolfe Herdfounded Bumble, the dating app that requires that women make the first move, in December 2014. Prior to that, she was a co-founder at Tinder, where she reportedly came up with the company's name and served as the VP of Marketing. After Wolfe Herd departed Tinder, she didn't have any plans to go back into the world of dating apps. She actually wanted to found a social space for women online. She pitched the idea to Russian billionaire Badoo Andrey Andreev. He didn't love the concept, but he did love Whitney's passion. He advised her to stick to what she knew: dating apps.

Bennett Raglin/Getty Images

From that meeting, Wolfe Herd landed on the idea for Bumble. It is pretty simple: when two people match, women have 24 hours to send the first message. If they don't, the match disappears. If they send a message, the man has 24 hours to reply, or the match disappears. Once both parties have sent a message, that timer gets turned off. Andreev put up $10 million for 70% of the company. He also gave Wolfe Herd access to his dating app Badoo's systems and software. Wolfe Herd brought the marketing prowess to the deal.

Together, Andreev and Wolfe Herd's stakes amount to about 80% of the company. Blackstone's multi-billion investment in Bumble strengthens the firm's strategy to take controlling stakes in companies with strong cash flows. Blackstone plans to help Bumble expand into more markets and working towards Wolfe Herd's original vision of facilitating non-dating related social meetups. Bumble already does this. In 2016, Bumble launched BFF, an app that helps women find friends. In 2017, it launched Bizz, an app that focuses on women meeting people for career networking. At each turn, Bumble puts women first and puts women in control.

Bumble now has more than 75 million users, up from 35 million users a little more than a year ago. Andreev's MagicLab is thought to be exploring an IPO.

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Bumble Founder Whitney Wolfe Herd Finally Elevated To CEO With New Investment From Blackstone Group - Celebrity Net Worth

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November 14th, 2019 at 2:44 pm

Posted in Investment

Intentional investment is the key for communities to thrive – Greater Baton Rouge Business Report

Posted: at 2:44 pm


Communities that intentionally invest in entrepreneurs and young businesses are the ones that will grow and thrive in the 21st century, according to Ross DeVol, president and CEO of Heartland Forward, a nonprofit think tank focused on improving economic performance in the center of the U.S.

Delivering the keynote address at this mornings annual CPEX Smart Growth Summit, DeVol presented new data and statistics to support what may seem like common sense: Innovation and entrepreneurship are critical components of places and can create jobs and vitality in sustaining growth over the long term.

Its not small firms that create growth, DeVol said. Its young firms that scale up. Its important to innovate and create new firms because eventually your anchor firms are not going to be as dominant.

DeVol presented maps showing metropolitan areas, and smaller micropolitan areas, where entrepreneurial activity and investment is high. Unsurprisingly, those communities tend to be wealthier, better educated and located in California, the Pacific Northwest, Texas, Massachusetts and south Florida.

Much of the heartland, including Louisiana, lags far behind. One Louisiana city, however, ranks among Heartland Forwards 30 most dynamic metropolitans: Lake Charles, coming in at No. 13 in the U.S.

While DeVol acknowledged that much of Lake Charles growth is fueled by the booming petrochemical sector, he said: Clearly, Lake Charles is trying to diversify its economy.

New Orleans-Metairie came in at No. 262 on the list, while Baton Rouge ranked 264th.

We must do more to participate in the knowledge-based economy and invest more in human capital, said DeVol, noting that smaller and heartland communities have an opportunity to market themselves to companies looking for places to locate that have a lower cost, a higher quality of life, less expensive housing options.

Its important for communities in the heartland to take advantage of existing resources like community colleges, which he says are underutilized and underappreciated, and also to do more to encourage financiers to support new and emerging businesses.

Financiers must become more comfortable investing in early-stage companies that dont have a lot of capital, he said.

Planning is a key component in this dynamic becomes it gives communities a road map to move forward.

Creating your own firms determines your destiny, he said. You need a shared vision, a plan people buy into. Without a plan, you dont know where youre headed. Planning is absolutely critical.

The CPEX summit continues through today. See the days lineup here.

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Intentional investment is the key for communities to thrive - Greater Baton Rouge Business Report

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November 14th, 2019 at 2:44 pm

Posted in Investment

Invest In Real Estate Like Warren Buffett Invests In The Stock Market – Forbes

Posted: at 2:44 pm


Warren Buffett is considered one of the greatest investors of our time. From his first investment at age 11 to his peak net worth of over $80 billion, its easy to see why. Many people all around the globe have aspired to replicate his incredible success, from the investment world over to the stock market. In good news, it is possible to apply seven of his key investment principles to your real estate investment strategy.

Find quality companies.

Buffett invests in high-quality companies with strong fundamentals, quicker to pay a fair price for a great company than a low price for a mediocre company.

When investing in real estate, invest in quality properties. It seems an obvious observation, but its one truly worth understanding. What exactly is a quality property? How do you decide a high-quality property versus a low-quality one? In much the same way as Buffett observes companies, Im talking about properties that have great bones and strong fundamental attributes such as a desirable location and financials that will make it appealing as a rental property or as a flip. Quality should be top priority within an investment strategy.

Look at your stocks as a business.

In a 2014CNBC interview, Buffett explained, If you own your stocks as an investment... look at them as a business.

When I coach new real estate investors, one of the first things I aim for is to get them thinking like an entrepreneur. Even if they are buying their very first property, having that business mindset is key in achieving success. In my experience, investors who mind the numbers and treat their investment as a business venture do much better than those who only follow their gut. Dont let this scare you, however; you dont need to be a mathematics genius to become a data-driven investor.

Invest in what you know.

Buffett is famously credited with saying, Never investin a businessyou do notunderstand.

The good news is that analyzing a property is much simpler than analyzing and understanding an entire business. However, spending the time to really get to know the type of properties you are investing in, as well as their market, is extremely important for investment success.

Think about your risk of loss.

Always evaluate the worst-case scenario before investing. This is a great tool to use to get you into the correct mindset, especially if youre just beginning your investment journey.

When it comes to real estate, understanding your worst-case scenario helps identify your own tolerance to taking risks and supports you in calculating how much reserves you should keep.

Have discipline.

One of Buffetts most important guideposts has been following his investment strategy, not his emotions.

I know many people who always seem to buy when the market is very hot, and panic and sell when its not. By having discipline, sticking to a well-planned strategy and not deviating from specific investment criteria, you will avoid making this common mistake.

Identify undervalued stocks.

Buffett is a value investor. That means investing in companies that seem to be trading under the value of the company.

This is an occurrence that frequently happens in real estate as well. The asking price of any property is set by a real estate agent who glanced at a few comparable properties and decided where to set the price with their client. Keep this in mind as identifying underpriced properties is essential to maximizing your success. Ultimately, when investing in real estate, you make money when you buy.

Be aggressive during tough times.

Buffett achievedgreat successwhen he saw an opportunity to invest when the market was not favorable.

Real estate investing is also cyclical. Im sure youve heard the terms buyers market and sellers market. A buyers market means that the buyer is advantaged; theres a lot of supply, and buyers have more negotiating power. As the name suggests, when its a buyers market, its time to buy! Real estate investment is very much a long game, so keep a long-term mindset.

When investing in real estate, it really boils down to a few simple questions:

Have you done your research?

Is the property undervalued?

Is it making money? Have you considered the revenue and the expenses?

Can things be done to increase its value (and cash flow, if its a rental property)?

Will market conditions help increase the value?

Is it in a desirable location? Have you considered the quality of the school and the job market, plans for future development, crime, etc.?

Are there major expenses or other risks you need to consider?

After analyzing everything, is there another property that has more potential?

By keeping Warren Buffetts investment principles in mind when investing in real estate, you will be set to start building your own empire and find opportunities in every market condition.

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Invest In Real Estate Like Warren Buffett Invests In The Stock Market - Forbes

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November 14th, 2019 at 2:44 pm

Posted in Investment

Are You Invested In These 3 Mutual Fund Misfires? – November 14, 2019 – Nasdaq

Posted: at 2:44 pm


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.

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.

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.

Iron Strategic Income Fund Investor (IRNIX): 1.45% expense ratio and 0.65% management fee. IRNIX 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-expenses return of 0.97%, you're mostly paying more in fees than returns.

Mainstay ICAP International Investor (ICELX): 1.41% expense ratio, 0.8%. ICELX is a Non US - Equity option, focusing their investments acoss emerging and developed markets, and can often extend across cap levels too. 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.

Thornburg Limited Term Municipal CA A (LTCAX) - 0.94% expense ratio, 0.49% management fee. This fund has yielded yearly returns of 0.88% 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.

Harbor Large Cap Value Institutional (HAVLX) is a fund that has an expense ratio of 0.68%, and a management fee of 0.6%. HAVLX is a part of the Large Cap Value category, and invests in equities with a market capitalization of $10 billion or more, but whose share prices do not reflect their intrinsic value. With yearly returns of 11.17% over the last five years, this fund clearly wins.

Calvert Equity Portfolio A (CSIEX) is a stand out fund. CSIEX is a Large Cap Growth mutual fund, and these funds invest in many large U.S. firms that are projected to grow at a faster rate than their large-cap peers. With five-year annualized performance of 12.93% and expense ratio of 1%, this diversified fund is an attractive buy with a strong history of performance.

Janus Henderson Growth & Income D (JNGIX) has an expense ratio of 0.77% and management fee of 0.6%. JNGIX is a Large Cap Blend fund, targeting companies with market caps of over $10 billion. These funds offer investors a stability, and are perfect for people with a "buy and hold" mindset. With annual returns of 11.56% over the last five years, this fund is a well-diversified fund with a long track record of success.

Bottom Line

These examples underscore the huge range in quality of mutual funds - from the really bad to the astonishingly good. There is no reason for your advisor to keep your money in any fund that charges more than you get in return (unless they're getting something out of it, like a high commission).

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If you have $500,000 or more to invest and want to learn more, click the link to download our free report, 9 Retirement Mistakes that will Ruin Your Retirement.

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To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Are You Invested In These 3 Mutual Fund Misfires? - November 14, 2019 - Nasdaq

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November 14th, 2019 at 2:44 pm

Posted in Investment


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