For most Americans, mutual funds are the synapse between them and Wall Street. We use mutual funds to place our bets on the future of the U.S. (and global) stock markets, and our retirement hopes ride on the outcome.
That's a monumental responsibility, and many mutual fund firms and managers strive to meet it, placing paramount importance on the long-term interests of individual investors. We try to praise such funds with columns such as
Unfortunately, plenty of fund firms look out for No. 1 first and foremost in their bid to lure and retain assets. They roll out and relentlessly advertise funds in hot categories that no investor needs, tack on fees that do nothing for investors except lighten their wallet and their managers disregard the fundamentals of investing to chase performance over the short term.
Lots of funds are guilty of this behavior, and it is a great disservice to individuals. Today's column delves into the Four Things I Hate About Mutual Funds. Not all mutual funds engage in lousy, self-serving behavior, but plenty do and investors need to know if their funds are among them. Now that everybody feels safe once again to open up their quarterly performance statements because the market is up, look closer to see how many of the following items your funds are guilty of.