3 Big Name Mutual Funds That Investors Must Avoid

It’s a known fact that some mutual funds continue to enjoy success as a trusted brand but there are others that tend to lose their “sheen”. This is why it is so important for investors to do their homework even if the mutual funds they’re investing in seem to be well-established.

Keeping this in mind, here are 3 big name mutual funds that investors must avoid:

#1: Fidelity Magellan

In the eighties, Fidelity Magellan was the largest mutual fund in the world, with over $ 100 billion in assets. However, all this has changed considering the 2 % return during the past decade. It’s not surprising because with $ 15.9 billion in assets, it’s becoming difficult to find investment opportunities that will restore this fund back to its former glory.

#2: Vanguard Windsor Investor

This fund has been able to come up with an average return of 14% for the past 31 years. However, with the absence of John Neff who left managing this fund in the nineties, this fund has been steadily losing about 2% over the last five years and declined by 4% in 2011, even though a big name Cisco is linked to this fund.

#3: Eaton Vance Large-Cap Value

Despite the fact that this fund is linked to names such as Pfizer, GE and Johnson & Johnson, this $ 12 billion fund has had an annualized loss of about 1.6 % for the past 5 years. In fact, it lost almost 4% just last year, thanks to being bullish on financials.