A GREAT INVESTMENT, BUT….
Mutual funds are a seemingly great investment. They allow any investor to buy a portfolio of stocks and bonds without having knowledge of the stock and bond markets.
Additionally, they allow the investor freedom from the day-to-day monitoring of his portfolio. They provide diversification any management by “professionals.”
So what could be bad about that?
Nothing’s wrong with mutual funds except that some investors do far worse than they should because they don’t really know what’s going on with the average mutual fund.
If you think selecting funds is easy, once you read this article, you may think differently.
In this article you’ll get a supplementary education on mutual funds.
You’ll have more knowledge about dealing with inevitable changes in equity prices.
You’ll learn to be wary of mutual fund advertising which advertises great past performance and why that may not be a good indicator of future performance.¹
In this article you learn:
- About the total fees that you pay.
- That sometimes, mutual fund you select isn’t what you think.
- That you may be investing in securities you don’t want.
- About building a portfolio of funds that complement each other rather than replicate each other.
- That many funds generate far more taxes than you want to pay.
Okay, get ready, and let’s get started.
Please carefully consider investment objectives, risks, charges, and expenses before investing.
For this and other information regarding a mutual fund investment, please read the prospectus carefully prior to making an investment.
¹”A fund’s past performance is not as important as you might think. Advertisements, rankings, and ratings often emphasize how well a fund has performed in the past. But studies show that the future is often different. This year’s “number one” fund can easily become next year’s below average fund.” SEC Document Invest Wisely – An Introduction to Mutual Funds at http://www.sec.gov/investor/pubs/inwsmf.htm#pitfalls