stats to hide lousy track records and to find

The bear market that showed up at the end of 2000 has every brokerage house-as well as the entire mutual fund industry-scrambling to find creative ways to boost both their image and bottom line. Unfortunately Kent Tekulve Pirates Jersey , this is often at the investors' expense.

Fund managers are ever on the lookout for ways to spin the stats to hide lousy track records and to find ways to obscure fees. To add insult to (financial) injury, investors end up being penalized for selling. So what's an investor to do? In this case, knowledge is power. Here are some of the ways mutual fund investors are being taken advantage of:



Performance is always an issue for any investor. Formerly great funds, which I've used myself during the 90s, are the junkyard dogs of this century. Janus Fund comes to mind and is one of many that buy-and-hold investors got stuck with. It's down 59% Roberto Clemente Pirates Jersey , since we acted on our Sell signal on 10132000.

Most of the funds today have 12b-1 fees place, and some go as high as 1% of a fund's assets per year. Between fees, commissions and management charges, the mutual fund industry is always getting paid, even if you Willie Stargell Pirates Jersey , the investor, are losing money. For example, if you had bought SunAmerica 2-12 years ago, you would have paid the above fees at 2.35% per year. And, if you finally decided your investment wasn't going anywhere Melky Cabrera FlexBase Jersey , you would have been stuck with a 5% deferred sales charge.

If you hold a fund less than 180 days, plan on being hit with a redemption fee. It's almost standard. What's the deal? Brokers only get paid while you hold their fund. So, if you're going to sell, they get a last whack. It's a great deterrent for selling, too. Can this be avoided? Not completely Chris Archer FlexBase Jersey , but if you have your money managed by an investment advisor, the holding period is reduced to 90 days.

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