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Article: Battling 'asset bloat'.(FINANCE)
- Article from:
- National Fisherman
- Article date:
- November 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 Diversified Publications. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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If you own mutual funds, do you own any that have gained in popularity over the past few years? Do you own any that have a "star" mutual fund manager? Have you often see your funds profiled periodically in personal finance publications? It may be an affirmation you made the right choice, but be careful for what you wish for.
Your mutual fund may have too many assets under management, otherwise known as "asset bloat." Asset bloat describes how an actively managed mutual fund's performance deteriorates as its asset base grows.
A classic example of asset bloat is Fidelity's Magellan Fund. If you are not familiar with Magellan, it was formerly managed by ...