06-24-2014, 07:07 PM
(This post was last modified: 06-24-2014, 09:43 PM by Dividend Watcher.)
Chuck Jaffe over on Marketwatch had a very interesting article on the problems with mutual funds. You can read it here.
I don't expect the article to be up long because of the mud thrown (maybe I'll be wrong but there's a lot of money at stake here) so here are the bullet points using his subheadings:
You can probably read between the lines but the article itself is pretty interesting.
I don't expect the article to be up long because of the mud thrown (maybe I'll be wrong but there's a lot of money at stake here) so here are the bullet points using his subheadings:
- Disclose how different funds are from the index they are measured against.
- Stop the gimmicks.
- Shut funds where asset growth has affected strategy.
- Agree to use a common language.
- Kill funds that can’t achieve economies of scale.
You can probably read between the lines but the article itself is pretty interesting.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan