Mutual Funds are much criticized for bad performance and high fees. But not all of them are bad.
If you own a mutual fund that continually lags its benchmark or barely follows it with high fees you should sell it. But some mutual funds that have good management and a good strategy can continually outperform their benchmark. Some of these funds ask for performance fees, but if the fund is good it could be worth it.
The advantage of mutual funds over stocks is diversification. The risk of one company going out of business is much bigger than a bunch of them. Mutual funds exist not just for stocks but also for bonds, real estate and even commodities.
A good way to buy these funds cheap is at an fund supermarket. These over a lot of fund at little or no transaction costs. Because they offer a lot of funds you can pick out the best performing ones per category. This is an easy and cheap way to invest. But beware you still have to pay for the fund management fees.
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