My wife has had an IRA for many years that is totally invested in one mutual fund. I have glanced at her statements over the years and noticed poor performance, but I would just shrug and figured things would even out in the long run. I think it was a Dean Witter fund but it is currently Deutsche Large Cap Value Fund Class A, symbol is KDCAX. I know "Large Cap Value" has not done well for years, but the underperformance of this fund is stunnning, for a supposedly large cap diversified fund.
1 year return = -17.49%, compared to -.09% for the Morningstar Large Value Index and +3.99% for S&P 500 TR USD index.
I just ran a "screen" on Schwab, sorting on average annual 1 year return and this fund turned up last of 130 funds in that category!!
Turnover ratio is 121% which ranks #11 of 131 funds.
If this was a brokerage account I think I would have a good case for accusing my broker of churning, and destroying my investment for his own personal benefit. Do I have any legal recourse with a mutual fund? I have advised my wife to sell this fund on Monday. I had no idea this piece of garbage was this bad. And to think there are "money managers" being paid to do this.