Secret Fees Make Mutual Funds Billions At Your Expense!
By Dr. Scott Brown, Ph.D., Thu Dec 8th
Many investors think that investing in is free.What nonsense! Funds collect more than $50 billion a year infees from investors. That is truly a ton of money. The first wayyou get hosed in a mutual fund is due to high fees charged.These fees can dramatically reduce your returns over time! The way that these fees are deducted automatically from a fund’sreturns makes them invisible because you never see an invoice orhave to write a check. If you invest $10,000.00 in a domesticstock mutual fund with an expense ratio of 2% and a sales loadof 3%, and let’s imagine that you get annual returns of 7.5% fortwenty years, your money would almost triple to $27,508.00. The bad news is that you would have lost $14,970 in fees andforegone earnings over the twenty years. Yikes…that reallyhurts! Why not just bypass the system and buy your own stocks asI teach finance students and home study investors?
These funds are also sold and managed on pure hype, short termtrading, and with key information withheld from the public. Allof these factors I teach finance students and investors toavoid! The industry confuses investors by focusing on pastperformance, which should not be a factor to consider. Manymutual funds are able to cheat the public with excessive
THE NO LOAD MUTUAL FUND TRACKER
Do you have a question regarding your mutual fund investments? I will always give you my unbiased and honest opinion. How can you be sure? First, this is a free newsletter and it will not affect my renewal rates. Second, I am not running for office and do not have to hide my thoughts in evasive language designed to obscure what I really mean.
feesbecause investors don’t understand how these big costs destroytheir profit. have no interest in educatinginvestors because it is easier to hoodwink the ignorant! Don’t put your trust in unless they are fullyindexed. Indexing means that the mutual fund simply uses acomputer to buy and sell stocks in the mutual fund portfolio soas to mimic the composition of a major stock market index likethe S&P 500. This means that there is no fund manager suckingout needless fees. A good example is the first fully indexedmutual fund called the Vanguard 500 (VFINX) which is also nowthe largest of its kind. About the author:ABOUT THE AUTHOR: Dr. Scott Brown, Ph.D., the Wallet Doctor, isa successful investor. Dr. Brown holds a Ph.D. in finance. TheWallet Doctor is sought after for investment advice andcoaching. For more information visit Dr. Brown’s site atwww.BonanzaBase.com or sign up for his investment tips atwww.WalletDoctor.com |
