| Mutual Funds vs More Flexible Investing |
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Lady of Spain
New Poster
Cash: $ 0.45
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Joined: 14 Aug 2011
Location: Georgia
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| Mutual Funds vs More Flexible Investing |
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Currently, I have a financial adviser to whom I pay a 1.8% flat fee. He meets all the requirements of transparency, credentials etc. He re-allocates the portfolio every few months and investments are in actively managed mutual funds. Interesting to note is that of the 50 Top 2010 Mutual Fund Performers, only three of my funds were listed. I saw my investments drop by 10% in the recent market plunge despite this "expert" advice. My question: Would it be better to invest with a firm like Fisher Investments as an example where investments are not subject to the end of the trading day as the case with mutual funds? Wouldn't such a move provide faster market response and potentially better returns?
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Sun Aug 14, 2011 8:28 pm |
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Lady of Spain
New Poster
Cash: $ 0.45
Posts: 2
Joined: 14 Aug 2011
Location: Georgia
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Coaster,
The concept is that earlier day pricing allows you to sell or buy stocks before the closing bell. If a stock is falling in price you can sell faster -- if stock is rising you can buy before it goes higher. In each case you would be protecting your capital. With mutual funds you would not have the advantage as you would have to wait to the end of the day. Therefore my questions is would it be better to stay with actively managed mutual funds regardless and take advantage of their expert research OR go with an investment firm which is not relegated to mutual fund end-of-day pricing.
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Tue Aug 16, 2011 2:09 am |
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kate032
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Location: Michigan
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There's one more option that may put you ahead of anything else, and that is to simply buy index funds and leave them alone. Their expense ratios are usually 75-80% of what you're paying now, and the end result for long-term investing is about the same.
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Tue Aug 16, 2011 3:00 am |
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