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What's The Reason For All The Fund Outflows At Fidelity ?
I wonder if there is another factor . Loss carryover from 2008 is pretty much over and I know that I was upset this April when doing my taxes revealed that my capital gain distributions were so large i owed a good deal of money. Even though my active funds did ok or well I was almost sorry I did not own index funds.
What was the net? In other words, is it better to index and do worse but pay lower tax? I look at tax like expenses, totally worth it if the manager does well over time.
That's why the metric "After Tax Return" I think is very important. I believe M* and Vanguard.com may report this, but I don't see it widely reported. Of course each person's tax situation is different, but the After Tax Returns should tell you what their tax rate assumption is in the footnote.
Hey, given enough time, even the normally clueless dumb money crowd can get it together and figure out when the jig is up. But I read about this outflow somewhere else and I think most of it flowed back into their fixed income funds, i.e. a net zero change for AUM at Fidelity.
Comments
Regards,
Ted
And since I am fundamentally too impatient to invest in mfunds in the first place, I also checked 3m and 1m.
Ooh, look, and guess what?
I believe M* and Vanguard.com may report this, but I don't see it widely reported.
Of course each person's tax situation is different, but the After Tax Returns should tell you what their tax rate assumption is in the footnote.