Because managing mutual funds is profitable, Wall Street produces more goods to market.
It's unlikely that the abundance of mutual funds is doing you as an investor any favours.
I utilise more trustworthy and exclusive data to pinpoint two warning signs that can help you avoid the worst mutual funds.
Even though mutual funds should be affordable, some are not. Setting standards for what inexpensive implies is the first step.
Invest solely in mutual funds with total annual costs below 1.82%, the average total annual expenses of the 664 U.S. stock sector mutual funds my business tracks, to be sure you are paying average or lower fees.
The fact that the weighted average is smaller, at 1.16%, demonstrates how investors frequently invest in mutual funds with modest costs.