The February 2019 AAII Journal is Now Available Online

COVER ARTICLE The Individual Investor’s Guide to the Top Mutual Funds 2019 By AAII Staff Our annual mutual fund guide provides information and performance statistics on 727 funds.   NOTES & OPINIONS Dispatches Current news items of interest to individual investors. Majority of Retirees Regret Not Saving More for Retirement Older Workers Investing More in…

 

“Enhanced” Index Funds: Can They Beat the Market?

John “Jack” Bogle, founder and former chairman of the Vanguard Group and father of the index mutual fund, passed away this week at the age of 89. Here is an article he contributed to the AAII Journal in 2007, which has been edited to reflect new data. Since the inception of the first index mutual fund…

 

For Mutual Funds, Competition Doesn’t Mean Lower Fees

Competition is usually associated with lower prices. The exact opposite pattern is occurring within the mutual fund industry. Expense ratios for U.S. domestic equity funds operating in more competitive market segments “charge significantly higher annual expense ratios than funds operating in less competitive market segments.” Among the better-known measures of cost is the expense ratio….

 

Analyzing Money Market Funds: Low Risk Isn’t No Risk

In uncertain times, even relatively low-risk investments come under strict investor scrutiny. And well they should, since they are viewed as a safe haven for hard-earned savings. Money market mutual funds are considered by many to set the standard for low-risk, liquid and convenient investments. As such, they must be able to stand up to…

 

The Other Part of the Equation: Assessing a Fund’s Risk

Editor’s Note: While this article is from 1989, and some of the mutual fund names have changed or the funds have merged or closed, the concepts of risk assessment still apply. Often, it is all too tempting to evaluate a mutual fund solely based on its rate of return over some period of time. Typically,…

 

How to Make Sense Out of Mutual Fund Data

If you are like most individual investors, you track your investments carefully. For your stock investments that means watching the share price, and for bonds that means watching the bond price. What about mutual funds? Many individuals track the fund’s net asset value (NAV). And in the process they may have found that their fund’s…

 

What You Need to Know About Investing in Closed-End Funds

Value investors love buying single dollar bills for 85 cents. That’s why closed-end funds, a long misunderstood mutual fund relative, attract certain sophisticated investors. A cross between a mutual fund and a stock, these funds have both a net asset value and a share price. Closed-end funds sometimes trade at double-digit discounts to net asset…

 

Fund Investors’ Biggest Mistakes and How You Can Avoid Them

Understanding how different investments work is the first step toward profitable investing. The second is making sure you—and your mutual fund manager—always maintain the correct wealth-building mindset. To become the best possible investor you can, it is imperative to avoid the big mistakes. Behavioral finance researchers investigate how human beings study and act on investment…

 

The Index Fund Approach: Tracking the Market

The goal of many individual investors is to beat the market. A large number, however, don’t—particularly when the costs of trying to do so are considered. One alternative is to apply the old adage, “If you can’t beat ’em, join ’em.” The index fund concept allows investors to do just that. A portfolio of stocks…