A user questioned the following two funds

Asset Class Symbol Name MyPlanIQ Fund Ranking
LARGE VALUE INUTX RiverSource Dividend Opportunity A 96%
LARGE VALUE RSDFX RiverSource Dividend Opportunity R5 78%

The question is why the two almost ‘identical’ funds have different rankings. The following is the comparison of the two funds:

 

Symbol

2008

2009

2010

2011

1 Yr

3 Yr

5 Yr

AR(%) INUTX -36.01 26.7 16.88 -3.36 1.9 15.71 0.28
AR(%) RSDFX -26.45 27.07 17.59 -3.03 2.17 16.28 NA

See detailed comparison here.

So it is clear that RSDFX out performs INUTX consistently. On a closer look,

RSDFX expenses:

Fees & Expenses
Expense RSDFX Category Avg
Annual Report Expense Ratio (net): 0.75% 1.27%
Prospectus Net Expense Ratio: 0.71% N/A
Prospectus Gross Expense Ratio: 0.71% N/A
Max 12b1 Fee: 0.00% N/A
Max Front End Sales Load: N/A 5.31%
Max Deferred Sales Load: N/A 2.50%
3 Yr Expense Projection*: 227 573
5 Yr Expense Projection*: 396 881
10 Yr Expense Projection*: 886 1,746

 

INUTX expenses:

Fees & Expenses
Expense INUTX Category Avg
Annual Report Expense Ratio (net): 1.16% 1.27%
Prospectus Net Expense Ratio: 1.11% N/A
Prospectus Gross Expense Ratio: 1.11% N/A
Max 12b1 Fee: 0.25% N/A
Max Front End Sales Load: 5.75% 5.31%
Max Deferred Sales Load: N/A 2.50%
3 Yr Expense Projection*: 908 573
5 Yr Expense Projection*: 1,152 881
10 Yr Expense Projection*: 1,853 1,746

So INUTX not only charges up front 5.75% fee but also charges 0.41% more than RSDFX!

Why INUTX even exists is beyond a reasonable mind.