Mutual funds with a purchase or sale fee, or with
a higher management fee do NOT perform any better, on average, and should generally be avoided.
Not exact matches
a) investing their own money alongside you, so your interests are aligned b) a stake in the company they work at i.e. it is a partnership or employee - owned c) a proven ability to outperform an index over the long - term (at least 10 years) d) reasonable charges — preferably no more than a 1 %
management fee and no performance
fee e) a concentrated,
high conviction portfolio i.e. they
do not just hug their benchmark f) a low - asset - turnover ratio i.e. they have a long - term investment horizon and rarely sell investments g) a proven ability to preserve capital during the bad times h) a stable team who have worked together for a number of years.
You
do realize that you can invest in the same ETFs elsewhere without paying any
management fee (0.25 % or
higher).
Don't make the mistake of thinking that
higher fees mean better
management, and therefore
higher returns.
The best ETFs are low - cost, simple and efficient investments Unlike many other financial innovations, ETFs don't load you up with heavy
management fees, or tie you down with
high redemption charges if you decide to get out of them.
Furthermore, most investors don't earn the same returns as the market, due to a combination of
fees (commissions, mutual fund MERs and portfolio
management fees) and poor market timing (buying
high and selling low).
That's because, unlike many other financial innovations, they don't load you up with heavy
management fees, or tie you down with
high redemption charges if you decide to get out of... Read More
It's tempting to argue that traditional active investing is dead, but I think only
high -
fee active
management is dead (even if
high -
fee active managers don't all know it yet).
If this is the case, it doesn't make sense to pay a
higher fee for «active»
management.
Unlike many other innovations, including many mutual funds, ETFs don't load you up with
high management fees, or tie you down with heavy redemption charges if you... Read More
That's because, unlike many other financial innovations, they don't load you up with heavy
management fees, or tie you down with
high redemption charges if you decide to get out of them.
Investment firm asset managers don't capture
high enough yields to counterbalance the
higher management expenses, brokerage
fees, and capital gains taxes.
Low Cost: Managing these funds
does not require a big team of analysts, managers or back - office staff so there is no need for
high management fees.
The
management fee seems to be a little
higher (0.33 %) with an additional (0.22 %) charge on the principal but it
does have international diversification (which you mentioned in a previous article was a good thing) but I am not sure if a) such fund is comparable and b) if the
higher management fees will be justified.
If you buy mutual funds through a bank or mutual fund sales specialist (as many investors
do), you're likely going to be charged
management fees (or MERs) well above 2 % — but for investors just starting out, those
high fees aren't going to make much of an impact on their fledgling portfolio.
Don't forget to shop around and I would also suggest not investing in funds with
high MER's (
management fees) or load
fees (penalties when cashing your money prematurely).
Unlike many other financial innovations, they don't load you up with heavy
management fees or tie you down with
high redemption charges if you decide to withdraw.
This kind of forecasting is worthless, in my opinion, and doesn't justify the
higher management fee (it's the most expensive of the three at 0.70 %), the inevitably
higher turnover, and the perpetual cash drag.
However, as a generalization I think it's pretty fair to say that the vast majority of mutual funds are closet - indexing leaches that
do no one any good (except for the
management companies who charge the
high fees).
Perhaps surprisingly, even professional active money managers on the average
do not
do better than the market after their increased investment company
management fees, greater brokerage costs, and
higher trading taxes are considered.
There are a lot of artists who are selling their art online for free, without paying a
management fee or
doing other things, but they have more than paid for it in other ways: sleepless nights spent working on their Web site, hours spent learning how to upload
high resolution images, use social media to gain a following, and write effective copy so that your visitors turn into buyers.
Their
fees are
high for property
management but it
does hedge you when issues occur.
They are strongly incentivized to charge
high management fees and have
high tenant turnover, because hey... what recourse
does the hapless buyer have, it's just mo» money in the pocket of the Turkey provider, after all (in other words - caveat emptor, mater frotteurs!