I
have always commented that indexed mutual funds or exchange traded
funds ( ETFs), are better than managed funds. They usually outperform
them, and at lower cost. Moreover, the lower the fund cost, the more
return an investor will get over the years.
This
question also will come up when a managed mutual fund you may have gets
merged into another. These mergers are usually done for either or both
of two reasons. To get economy of scale. Or, more often, to hide losing
records. In
most instances, index funds or exchange traded funds are always a
better investment choice.
Also, don’t attempt to trade managed funds on
relatively short term performance. Besides,
their internal managements generally change constantly. (See the Earl
J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)
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