What Every Investor Should Know About Mutual Funds

In mutual fund investing there are no immutable laws to guide us, as we have in physics. But then again, it’s not professional wrestling either. Some of what follows distills the collective experience of mutual fund investing; some of it has empirical evidence pointing its way. But most are simply common sense axioms that investors…

 

Fees on Mutual Funds Could Get Cheaper

There is some good news for investors: The war on expenses is continuing. Vanguard recently filed with the Securities and Exchange Commission (SEC) to launch two funds with total annual operating expenses of 0.01%. That is not a typo; the expense ratio was copied and pasted directly from the SEC filing. How cheap is 0.01%?…

 

Qualitative Guidelines for Mutual Fund Selection

This article originally appeared in the June 2014 issue of the AAII Journal. Many articles exist on how to use financial data to pick solid mutual funds. But what comes after screening based on quantitative metrics? What about the other side of fund selection—the qualitative criteria that can help investors better understand and select investments to fill their…