Lowest performing mutual funds for the past ten years
By use of high fee an poor performance investors can get the necessary information conseing which funds they should avoid and which they should invest in. Some mutual funds are at time worse than other and this leads to them being noted as the lowest performing mual fund. With this reference, this funds usually find it very hard to attract new investors and also maintain its initial investors. The following include twelve lowest performing mutual funds within ten years
Oppenheimer Commodity strategy –this has maintained a total return of -14.16 percent
Rydex Inverse Government bond – this has maintained a -13.7 percent return
Ivy Global Natural resource – This has maintained a -12.6 percent return
Rydex Inverse 500 – has maintained a -12.6 percent return
Federated Prudent Bear – This has maintained a -10.48 percent return
DWS gold and precious metal – this has maintained a -10.16 percent
7.ALPS/Red Rock Listed Private Equity- this has maintained a -9.45 percent return
Goldman Sachs Emerging Market Equity- this has maintained a – 8.84 percent
DWS latin America Equity – this has maintained a – 8.74 percent
Dreyfus Emerging markets – this has maintained a -8.27 percent
It is worthy to note that The Gold man fund has a three star rating while ALPS and IVY funds have a one star rating.
Investors who are evaluating different mutual funds, they should keenly look at the expense ratio and also consider the option that active manager do not always achieve a basic market return. Most analyses have often claimed that active manager tend to underperform the index. They also tend to charge higher fees.
Over the past few years mutual funds has been on a decline though it still dominates the market. They currently hold about $1.5 trillion in assets.
Avoiding low performing mutual funds is the vision of all investors, the following include some of the mistakes that investors make when investing in mutual fund
Index funds investing
Most people have a misconception that index funds are the only funds on needs. This is because they are not the safest option to invest in. during the tech bear market investors who had invested in them lost approximately $40 billion.
Jumping into bubble sectors
Even after the Mortgage melt down investors are still very much inclined to invest in the sector fund. This type of buying is usually associated with a market-timing which most individual never grasp easily.
Taking closed for an answer
At times investors hear of hot investment, only to go online and discover that it has been closed. Investors should not give up easily on this investment, they can simply wait until they reopen and then invest in them.
It is also in proper order to carryout related research online so that investors only make the right choice.