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Fulcrum Fees May Save Active Management & Your Portfolio

FYI: There are a couple of really big detriments that help govern success when it comes to investing. Perhaps, none could be bigger than what you pay for investments. Fees, expenses, brokerage costs, sales loads or whatever – they all come directly out of your bottom line. The more you pay, the less you earn. It really is as simple as that.

And investors have bought hard into that mantra. Low-cost passive/index investing is quickly overtaking more expensive active management in a big way. That’s a huge problem if you’re an investment manager that specializes in stock picking or active funds.

But active managers may have found a way to stay competitive on the fee front with passive index funds and ETFs. The answer may lie within so-called performance-based or fulcrum fees.

For investors, these new fulcrum fees could be the answer to getting the best of active management without one of its biggest issues.
Regards,
Ted
http://mutualfunds.com/education/fulcrum-fees-may-save-active-management-your-portfolio/

Comments

  • Active managers have had a great chance to prove their value these last 8 weeks, as passive indexers have been hit hard.
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