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Article: SCOTT BURNS: A yardstick for mutual fund expenses
- Article from:
- Daily Breeze
- Article date:
- October 2, 2009
- Author:
CopyrightCopyright 2009 Daily Breeze. Provided by ProQuest LLC. (Hide copyright information)
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Whose money is it, anyway?
In case you have forgotten, all that money in mutual funds
belongs to you and me. It may be diminished, but what remains is
still our money. Unfortunately, that doesn't mean we get the most
reliable benefit from our money - income.
Like the old divorce joke - "She got the mine and I got the
shaft" - the financial services industry gets paid first, but we
take the fall when markets collapse.
Here's a troubling snapshot. The largest category of mutual funds
is what Morningstar calls "domestic large cap blend" funds. The
Morningstar database indicates 1,768 of these funds with three-year
track records. Average the group and you'll find they have average
net expense ...