Ever wonder why your stockbroker or insurance agent was so insistent that you buy mutual funds from a specific fund family? It may have been because they were paid more to sell those funds. Your sales agent may have even gotten a free trip to the Caribbean for convincing you to invest. The practice is called revenue sharing or “pay […]
Month: January 2005
Active mutual funds trail the indexes once again
Yet another study comparing the returns of active and indexed mutual funds has named indexed funds as the clear winners. The study of active mutual funds showed that over a 10-year period ending in 2003, active funds underperformed their benchmark indexes by three to one. The poor results were not limited to large stocks, moreover: funds in every stock size […]
Client Letter – Q4 2004
Happy New Year! We had another excellent year and I think you will be pleased with the results. Our diversification into such areas as real estate, small stocks, international stocks, and emerging markets stocks and bonds was very profitable in 2004. Returns in those areas beat the U.S. stock market, as measured by the Standard & Poor’s 500 Index. The […]
