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From the article: "While you shouldn't pick funds solely based on fees, expenses matter because high fees will substantially reduce your returns. Remember, though, that some things in life are worth paying more for, and a good fund manager is one of those things. One rule of thumb: If the fund's expense ratio is more than 1.5%, you should be really sure about the fund manager before you buy"
Huh? Whoever wrote this article sounds like a financial adviser considering he talked about what they like to do when selecting funds for their clients' portfolios, and he spouts this crap. How exactly does one get "really sure" about the fund manager before you buy? It sounds a little like knowing your manager isn't as important if he doesn't have to overcome a big expense ratio. We know statistically that a big portion of fund managers can't beat a low cost index fund after expenses, so it seems to me you'd want to know your manager as well as you can no matter what the expense ratio is.
I always paid people what they were worth....why would fund managers be any Different? All returns are figured net of expenses..... All done for easy return comparisons and valued added.....easy peasy
Comments
Huh? Whoever wrote this article sounds like a financial adviser considering he talked about what they like to do when selecting funds for their clients' portfolios, and he spouts this crap. How exactly does one get "really sure" about the fund manager before you buy? It sounds a little like knowing your manager isn't as important if he doesn't have to overcome a big expense ratio. We know statistically that a big portion of fund managers can't beat a low cost index fund after expenses, so it seems to me you'd want to know your manager as well as you can no matter what the expense ratio is.
All returns are figured net of expenses..... All done for easy return comparisons and valued added.....easy peasy