Investors Could See a LIFE-line in Their 401ks
Aaron Levitt
|
Building on the momentum of the _SECURE Act_, a new bill in Congress...
See also 7 Questions to Ask When Buying a Mutual Fund
Here are seven of the most common pitfalls that investors make when it comes to investing in mutual funds.
However, as they say: “past performance is no guarantee of future results.”
A recent study by McGill University found that by 2006 (before the 2007/2008 crash), only 0.6% worth of fund managers were able to keep-up their “superstar” status and beat the indexes over time. For investors, looking at longer term performance metrics makes more sense than betting on last year’s hotshot manager.
See also How to Read a Mutual Fund Table
Investors end up paying more in expenses and costs to basically track the market. If you’re looking to buy a large cap stock mutual fund and its holdings look an awful like the S&P 500, you’re probably paying too much for the fund.
Investors must actually open up a prospectus and dig into the fund’s holdings to see how its assets are diversified.
Be sure to see our Complete Guide to Mutual Fund Expenses
These expenses can eat up returns over the long haul and cost investors some serious coin. To combat this issue, investors need to compare the expense ratios of alike products – even at the same fund company. For example, the $231 billion PIMCO Total Return Bond Fund comes in several flavors for the same exact fund. Class A shares PTTAX come with a nasty sales load, while Class D shares PTTDX do not. Mutual fund investors have to see if they are getting the best deal or not and save on those costs.
That “tax-drag” could make owning the mutual fund undesirable. While there are ways to avoid or defer taxes—like using an IRA or 401(k)—investors need to consider taxes as part of the planning stages when it comes to selecting a mutual fund.
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
Building on the momentum of the _SECURE Act_, a new bill in Congress...
Justin Kuepper
|
Let's take a closer look at the new actively-managed ETF and why investors...
Kristan Wojnar, RCC™
|
As we enter a new week, we are touching on the subjects of...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...
See also 7 Questions to Ask When Buying a Mutual Fund
Here are seven of the most common pitfalls that investors make when it comes to investing in mutual funds.
However, as they say: “past performance is no guarantee of future results.”
A recent study by McGill University found that by 2006 (before the 2007/2008 crash), only 0.6% worth of fund managers were able to keep-up their “superstar” status and beat the indexes over time. For investors, looking at longer term performance metrics makes more sense than betting on last year’s hotshot manager.
See also How to Read a Mutual Fund Table
Investors end up paying more in expenses and costs to basically track the market. If you’re looking to buy a large cap stock mutual fund and its holdings look an awful like the S&P 500, you’re probably paying too much for the fund.
Investors must actually open up a prospectus and dig into the fund’s holdings to see how its assets are diversified.
Be sure to see our Complete Guide to Mutual Fund Expenses
These expenses can eat up returns over the long haul and cost investors some serious coin. To combat this issue, investors need to compare the expense ratios of alike products – even at the same fund company. For example, the $231 billion PIMCO Total Return Bond Fund comes in several flavors for the same exact fund. Class A shares PTTAX come with a nasty sales load, while Class D shares PTTDX do not. Mutual fund investors have to see if they are getting the best deal or not and save on those costs.
That “tax-drag” could make owning the mutual fund undesirable. While there are ways to avoid or defer taxes—like using an IRA or 401(k)—investors need to consider taxes as part of the planning stages when it comes to selecting a mutual fund.
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
Building on the momentum of the _SECURE Act_, a new bill in Congress...
Justin Kuepper
|
Let's take a closer look at the new actively-managed ETF and why investors...
Kristan Wojnar, RCC™
|
As we enter a new week, we are touching on the subjects of...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...