We all like to believe there is a Holy Grail mutual fund out there that will deliver huge returns year after year without fail. That belief feeds into the marketing of mutual funds—advertisements that sport huge recent returns listed in bold letters lure investors to high-risk funds whose time is often past. It also provides fodder to the publications that […]
Month: January 2002
Fund investors earn lower returns because of excessive trading
Mutual fund investors are hurting themselves by trading their funds too frequently and buying at the wrong times, concludes a study of mutual fund cash flows by Gavin Quill, senior vice president of Financial Research Corp. in Boston, Mass. Quill studied the flows of money into and out of stock and bond mutual funds during the 1996 through 2000. He […]
Mutual fund concentration
Over the past month the stock of Enron Corp., one of the largest U.S. stocks, has been virtually wiped out as the energy trading company unraveled. Although many mutual funds hold the stock, a few will be particularly affected because they held big Enron positions. Three Janus funds—Janus Two, Special Situations, and Orion—and the Merrill Lynch Focus Twenty fund had […]
