Saturday, September 24, 2011

Mutual Fund largesse and you

John Thomas-

Mutual fund have bloated expenses and spendthrift marketing costs. You can’t miss those glitzy, overproduced, big budget ads on TV for a multitude of mutual fund families. You know, the ones with the senior couple holding hands walking down the beach into the sunset, the raging bulls, etc. You are the sucker who is paying for these.

There were so many conflicts of interest it would have done Bernie Madoff proud. Any trainee assistant trader can tell you that more 90% of all mutual fund managers reliably underperform the indexes, some grotesquely so. Published performance is bogus, they show a huge survivor bias, not including the hundreds of mutual funds that close each year.

No comments:

Post a Comment