Fidelity and Vanguard may have avoided the stench of recent scandals, but they couldn't escape the ire of one investment adviser or his quarterly Hall of Shame listing the worst mutual funds in the country. The Fidelity Destiny 1 fund and the Vanguard U.S. Growth fund are two of 15 funds that Adam Bold, founder and CIO of Overland Park, Kan.-based The Mutual Fund Store, a fee-based investment advisory firm, has singled out as being worthy of such a notorious distinction.
Bold, also the host of "The Mutual Fund Show," a radio talk show that airs in several markets including Chicago and St. Louis, inducts funds that have had recent poor performance as well as consistently sour returns over an extended period of time. Fees are not a factor in his decision. "The amazing thing to me is not that there are bad funds out there but that there is so much money in bad funds," Bold said. "Billions and billions of dollars are being wasted away in absolutely awful mutual funds."