Mutual Funds

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Why High Turnover Is Bad

Submitted by David John Marotta on Monday, August 17, 2015 - 9:00am

A high turnover rate is not something you want in a stock fund. Let’s look at performance numbers to see why. When fund managers frequently trade a stock fund, it produces lower returns than if they trade less than 15% each year.

Greek Tragedy: It’s Hopeless

Submitted by Lewis J. Walker on Tuesday, August 11, 2015 - 9:00am

Greece’s dilemma underscores, once again, the sad truth about when unbridled debt goes wrong: Someone, and maybe everyone, will end up suffering. Those who think financial machinations, like more bailouts, can fix the problem are kidding themselves.

Not the Time for Bond Funds

Submitted by Raul Elizalde on Wednesday, August 5, 2015 - 9:00am

Bond funds are not the place to be if interest rates start to rise in earnest. Unlike buyers of individual bonds, who can ride out the resulting value drops until their holdings mature, fund investors can get slammed. Their funds, which must routinely buy and sell underlying assets, suffer the full force of the price drop.

Why Not to Chase Returns

Submitted by Larry Frank on Monday, August 3, 2015 - 3:00pm

You hear advisors on TV talking about how they research and pick the securities with the highest returns. That sounds good since who doesn’t want the best? Why not jump in and catch the wave? Here are three reasons why not.

Target Funds: Too Simple?

Submitted by Jason Lina on Friday, July 10, 2015 - 3:00pm

My toddler son spends long stretches every day hitting a foam golf ball around the yard; occasionally we visit a local pitch-putt course where he brings just his putter and his driver clubs. This simplistic approach to the game has drawbacks, of course, and in that way parallels a popular investment vehicle: the target date mutual fund.

The Virtue of Staying Put

Submitted by Lewis J. Walker on Monday, July 6, 2015 - 9:00am

The psychological urge to move on is ingrained in the American character. As investors, this compulsion does us no favors when the stock market is hot and we chase the top performers, or when it’s plunging and we flee longstanding holdings.

Funds: Similar; Results: Not

Submitted by Jared Kizer on Monday, June 29, 2015 - 9:00am

Fortunes change for mutual funds, even the best ones. That’s true for funds that seem to be alike. Subtle differences, however, can spell a noteworthy divergence in performance. A case in point is the contrast between good funds from Dimensional Fund Advisors and Vanguard Investments.

The Science of Rebalancing

Submitted by David John Marotta and Megan Russell on Monday, June 8, 2015 - 9:00am

Rebalancing is the process of buying and selling assets to move your portfolio in alignment with its original target allocation. Restoring your mix can both boost returns and lower volatility, but most investors do not understand how.