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 is simply common sense that investors often…

 

Taking on Risk and Hoping the Strategy Doesn’t Backfire

Oh boy. There’s something new to be filed under the category of, “Well, it seemed like a good idea at the time.” It is cash secured puts on the S&P 500. According to The Wall Street Journal, pension funds in Hawaii and South Carolina are using the strategy to generate income. It is a strategy…

 

The Truth About Top-Performing Mutual Fund Managers

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: The Truth About Top-Performing Mutual Fund Managers It’s only natural for investors to look at past performance when selecting managers of either mutual funds or separate accounts. Almost everyone is impressed by a strong track record. However, investors may be making a crucial mistake by fleeing…

 

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…