Attempts are being made in a case that may even go to the Supreme Court, to supervise by government regulation, the fees charged by mutual funds for management.
The question often arises whether this may even be a regulatory matter. Investors ought to know enough to compare funds’ expenses and to choose to buy those with the lowest expense of operation. The funds give this information very clearly.
In fact, management of mutual funds often has little to do with success. Those funds which follow market indexes often perform better than managed funds. The overall success factor for choosing the right fund is low cost.
But that should not be the government’s function. Politics has a nasty habit of interfering with choice, and politicians are not the wisest advisers around.
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