It costs money to run a mutual fund and investors should gravitate toward funds that cost less than average to operate. Mutual funds as a class of investments are excellent low-cost instruments for most investors. But their low-cost average obscures those funds whose operating costs are significantly higher than average. Operational costs detract from a fund’s net return. A fund […]
Month: June 2003
Go worldwide for best diversification
The average American investor seems to have myopia about investing outside of the United States. That is a shame because diversification is the key to a successful portfolio, and foreign stocks and bonds offer tremendous diversification benefits. Back in 2000—the last full year where more stock mutual fund shares were purchased than sold—domestic stock funds had net inflows of over […]
