The government has been questioning whether fees charged by mutual funds for management may be a regulatory matter. Should Uncle Sam be the one to advise how high they ought to be?
Investors should 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. Lower-cost funds which follow market indexes often perform better than managed funds. The overall success factor for choosing the right fund is low cost.
However, that should not be the government’s function. Politics have a nasty habit of interfering with choice, and politicians are not the wisest advisers around.
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