Wednesday, December 9, 2009

Investing is Never Simple

Mutual fund investing should be a simple process. It should be straightforward and easy to understand. Unfortunately, once we get involved, we bring our own set of behaviors to the process. And Boomers as a rule, should know better.

In our first discussion about performance comparisons for mutual funds, we looked at the downside of simply comparing side-by-side an actively managed fund with one of the indexes that are published. These indexes span a wide variety of categories in order to help investors understand how the broader market has done in relation to the fund they own.

Which leads us to a discussion about fees.

Paul Petillo is the Managing Editor of Target2025.com and a fellow Boomer

No comments: