Ramit at I will teach you to be rich has reposted a post entitled “All about Mutual Funds” that is definetely worth a read. In it he explains quite a bit about mutual funds and different reasons to invest and not invest.
The dirty secret of mutual funds
Earlier I told you how most adults in America have mutual funds. Now let me explain why they are pretty stupid. Ok, you are paying for expert advice and a Very Smart Person to invest your money.
Stay with me. Remember when I told you that The Market returns about 11% per year?
Now, with all your Smart Money Manager’s tools and resources, you’d of course expect him to beat that. But…
Over 85% of mutual funds fail to beat the market.
Interesting. Of course some of us have no choice but to invest in Mutuals as our 401(k)’s have us locked into them. The rest of our investing money is free to do with what we choose… Where is yours?