HCMNX vs MEAIX Fund Comparison

A comparison between HCMNX and MEAIX based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on HCMNX vs MEAIX

Here's an in depth look at the differences between HCM Dividend Sector Plus Fund Class A($HCMNX) and Morgan Stanley Institutional Fund, Inc. Emerging Markets Fixed Income Opportunities Portfolio I($MEAIX).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

  • hcmnx
  • Mutual Fund
  • US Stocks
  • Large Value

HCM Dividend Sector Plus Fund Class A

Expenses: 2.19% (Better than 0% of similar funds)

This is a bad choice for a Large Value US Stocks fund. See why »

  • meaix
  • Mutual Fund
  • Bond
  • High Yield Bond

Morgan Stanley Institutional Fund, Inc. Emerging Markets Fixed Income Opportunities Portfolio I

Expenses: 0.83% (Better than 1% of similar funds)

This is a bad choice for a High Yield Bond Bond fund. See why »

Both $HCMNX and $MEAIX are categorized as Mutual Funds. Mutual funds are often offered by 401(k) platforms and are essentially the same as ETFs. Mutual funds are generally offered by an investment platform – Fidelity has Fidelity mutual funds, Vanguard has Vanguard mutual funds. Mutual funds are ideal for retirement investing since you can invest any amount. That allows you to invest every last cent and benefit from the market.

The biggest disadvantage of mutual funds is that you're usually limited to the funds on your investment platform. If you're investing on Fidelity, you'll want to pick Fidelity mutual funds (or any ETF). Same with Vanguard. Some platforms offer mutual funds from other platforms, but they may charge a purchse or redemption fee. I'd recommend using the same platform as your funds – or stick to ETFs.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

HCMNXMEAIX
Market Score 4.5 /10 1.7 /10
Category Score 8.0 /10 0.0 /10
Total12.51.7

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $HCMNX

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, HCMNX has an expense ratio of 2.19% while MEAIX has an expense ratio of 0.83%.

Winner: $MEAIX

Fund Size Comparison

Both HCMNX and MEAIX have a similar number of assets under management. HCMNX has 382 Million in assets under management, while MEAIX has 46.4 Million.

Minafi categorizes both of these funds as small funds. Fund size is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

Winner: tie

Which Should You Choose? HCMNX or MEAIX?

Comparing these two funds isn't an apples to apples comparison. HCMNX is a US StocksLarge Value fund, while MEAIX is a BondHigh Yield Bond fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives HCMNX a score of 27 and MEAIX a score of 25.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$HCMNX

HCM Dividend Sector Plus Fund Class A

27

Read More
Ratings
Rating TypeRating
Expense Ratio Score0/10
Expense Rating0/10
Market Score4/10
Category Score8/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateMar-11-2015
ExchangeNMFQS
Expense Ratio2.190%
Net Assets382 Million
Yield0.77%
Holdings
DescriptionInfo
MarketUS Stocks
CategoryLarge Value
Sectors
  • Basic Materials 3.35%
  • Communication Services 7.63%
  • Consumer Cyclical 10.72%
  • Consumer Defensive 12.67%
  • Energy 0.76%
  • Financial Services 10.35%
  • Healthcare 14.29%
  • Industrials 15.03%
  • Real Estate 0.41%
  • Technology 20.21%
  • Utilities 4.58%
Regions
  • Asia Developed 0.01%
  • Asia Emerging 0.23%
  • Europe Developed 0.58%
  • Latin America 0.05%
  • North America 99.01%
  • United Kingdom 0.12%

$MEAIX

Morgan Stanley Institutional Fund, Inc. Emerging Markets Fixed Income Opportunities Portfolio I

25

Read More
Ratings
Rating TypeRating
Expense Ratio Score6/10
Expense Rating2/10
Market Score2/10
Category Score0/10
Overview
OverviewDetails
Fund TypeMutual Fund
Inception DateMay-24-2012
ExchangeNMFQS
Expense Ratio0.830%
Net Assets46.4 Million
Yield5.74%
Holdings
DescriptionInfo
MarketBond
CategoryHigh Yield Bond
Sectors
  • Agency Mortgage-Backed 0.00%
  • Agency/Quasi-Agency 5.54%
  • Asset-Backed 0.00%
  • Bank Loan 0.00%
  • Cash & Equivalents 5.98%
  • Commercial MBS 0.00%
  • Convertible 0.00%
  • Corporate 24.11%
  • Corporate Bond 24.11%
  • Covered Bond 0.00%
  • Government 62.10%
  • Municipal 0.00%
  • Non-Agency Residential MBS 0.00%
  • Other 0.00%
  • Other Government Related 0.00%
  • Preferred 0.00%
  • Securitized 0.00%
  • Supranational 1.90%

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