The Case Against Mutual Funds Part 6
At Least We’re Not in Last Place Anymore. Great News! Canada no longer ranks dead last in the international ranking of how much mutual-fund investors pay in fees. According to global rankings released recently by Morningstar Canada is now only “below average. Both Italy and Taiwan fell below Canada in the latest rankings as countries that pay higher investment fees than Canada. In spite of this “improvement”, the report shows that Canadians pay a median of
Yes! You Can Buy the Entire Stock Market
Today, it’s extremely easy to invest in products called “index funds” that accurately track the S&P 500 (or many other market indices). The best news of all is that most index funds are extremely efficient and costs very little to own.
The Case Against Mutual Funds Part 5
The Zero-Sum Game. Investing in a stock is participating in the profits of a company. It is possible for a group of shareholders to buy
The Case Against Mutual Funds Part 4
Checking Historic Performance. As we’ve already discussed, the combination of short-term performance constraints and the fees charged makes it nearly impossible for all but the
The Case Against Mutual Funds Part 3
Comparing Their Top 10. So is there indication of “closet indexing” in the mutual funds you own? Most, if not all, mutual funds publish a
The Case Against Mutual Funds Part 2
How Money Managers Keep Their Jobs. Mutual funds make money by charging its unit holders a fixed percentage each year (typically between 1% to 3%)
The Case Against Mutual Funds Part 1
How 1% becomes 30%. Mutual funds make money by charging fees to unit holders. Good or bad, up or down, fees are deducted from unit