http://www.bnet.com/5799-19701-0.html?type=18 Blog Recent Discussion Activity http://moneywatch.bnet.com/investing/blog/fund-watch/longshort-mutual-funds-more-style-than-substance/315/#18368_92242 Thanks, Larry. Warren Buffett quipped that investors should beware of geeks bearing formulas. So should mutual fund investors beware of mutual fund salesmen bearing innovations. Tue, 24 Nov 2009 01:31:56 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/longshort-mutual-funds-more-style-than-substance/315/#18368_92242 2009-11-24T01:31:56Z http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_91414 That's a good question, Bshukla101. Best way to answer it is for you to run the numbers. Determine what the cost, in dollars, would be for the excessive fees over the next two years, and compare that figure to what you would pay in moving to an index fund with a .10% or .20% fee over that same period, plus the penalty you would pay. Whichever figure is lower is your best course of action. Thu, 19 Nov 2009 01:43:40 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_91414 2009-11-19T01:43:40Z http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_91237 What do you suggest if part of my funds are parked in index funds with a pre-2 yr termination penalty and a high expense rate. Should I just wait it out for 2 yrs? Wed, 18 Nov 2009 14:21:12 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_91237 2009-11-18T14:21:12Z http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_90896 I think there are a lot of deals being struck there, MrRosemary. Unfortunately, many times employees are being represented in those negotiations by someone who's ill-informed, at best. Tue, 17 Nov 2009 01:24:44 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_90896 2009-11-17T01:24:44Z http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_90442 The reason they exist in 401ks, I think, is that the custodial firms cut the fees they charge companies to woo them, but offer crappy funds to the employees. What they lose in the administration fee they gain in fund management fees.<br><br>This is exactly what happened to my 401k. Fri, 13 Nov 2009 05:22:55 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_90442 2009-11-13T05:22:55Z http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_90430 I agree, funddaddy. It is old news to folks like you and me who understand the basic mathematics of investing. But there is a large segment of the population who don't understand this, or who think that a small difference in fees is a trivial matter. Fri, 13 Nov 2009 00:36:05 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_90430 2009-11-13T00:36:05Z http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_90399 You're right, MrRosemary. I suspect many of these are offered in retirement plans. (Although I'd be shocked if Rydex funds were in anyone's other than through a brokerage option.) Which is a sad statement about the job those employers are doing looking out for their employees. Fri, 13 Nov 2009 00:34:24 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_90399 2009-11-13T00:34:24Z http://moneywatch.bnet.com/investing/blog/fund-watch/why-mutual-fund-investors-should-prevail-in-jones-v-harris-associates/318/#18331_90382 I'm just a small investor but a few laws can make everything so simple.<br>1. No load funds.<br>2. Max total annual expense 1%.<br>3. Your broker\FA (and all other titles) should send you a monthly statement with the following<br><br>Page 1 will have only 2 lines<br>The Total Fees/Commissions for this month are <br> $xxxx.xx<br>This will be in 1 inch size character.<br><br>Page 2 and beyond...print all the rest.<br><br>I have a few more but let's start with the above and see how many fund managers and FA survive...not many, guarantee Thu, 12 Nov 2009 20:57:54 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/why-mutual-fund-investors-should-prevail-in-jones-v-harris-associates/318/#18331_90382 2009-11-12T20:57:54Z http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_90369 Old news...go with VG, Fido and Schwab SP500 funds. Thu, 12 Nov 2009 20:47:54 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_90369 2009-11-12T20:47:54Z http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_90287 The bulk of those crappy index funds are likely in HSAs and 401ks. I am stuck with one of them in my 401k. Thu, 12 Nov 2009 05:09:50 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/beware-of-the-differences-between-sp-500-index-funds/326/#18637_90287 2009-11-12T05:09:50Z http://moneywatch.bnet.com/investing/blog/fund-watch/why-mutual-fund-investors-should-prevail-in-jones-v-harris-associates/318/#18331_89012 well from the way the deck is stacked against the investors, rigged might even be an understatement. Wed, 04 Nov 2009 19:21:28 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/why-mutual-fund-investors-should-prevail-in-jones-v-harris-associates/318/#18331_89012 2009-11-04T19:21:28Z http://moneywatch.bnet.com/investing/blog/fund-watch/longshort-mutual-funds-more-style-than-substance/315/#18368_88920 Nathan<br>Excellent piece--Long/short funds are another example of the triumph of hype, hope and marketing over wisdom and experience. Wed, 04 Nov 2009 13:29:40 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/longshort-mutual-funds-more-style-than-substance/315/#18368_88920 2009-11-04T13:29:40Z http://moneywatch.bnet.com/investing/blog/fund-watch/why-mutual-fund-investors-should-prevail-in-jones-v-harris-associates/318/#18331_88820 Well, rigged might be too strong a word, but you're right in that it can do a very efficient job of fleecing unknowledgeable investors. If I had to bet on the outcome, I'd wager on the Supreme Court ruling that it's reasonable for courts to compare the fees institutional clients pay in determining whether a mutual fund's fees are too high. But you never know. Wed, 04 Nov 2009 01:28:22 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/why-mutual-fund-investors-should-prevail-in-jones-v-harris-associates/318/#18331_88820 2009-11-04T01:28:22Z http://moneywatch.bnet.com/investing/blog/fund-watch/why-mutual-fund-investors-should-prevail-in-jones-v-harris-associates/318/#18331_88641 I am guessing the Fund managers will win. it does seem like the wall street game is pretty much rigged against investors Tue, 03 Nov 2009 18:14:00 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/why-mutual-fund-investors-should-prevail-in-jones-v-harris-associates/318/#18331_88641 2009-11-03T18:14:00Z http://moneywatch.bnet.com/investing/blog/fund-watch/should-you-worry-that-the-feds-no-longer-insure-your-money-market-fund/301/#17041_82675 Thanks for the comment. I think it depends most on the size of the sponsoring firm. There were probably a one or two dozen money market funds that would have broken the buck in 2008 if the manager hadn't stepped in to make them whole. That was the Reserve fund's problem; the fund was huge, the losses were huge, and they didn't have a deep-pocketed owner to step up. Wed, 30 Sep 2009 00:25:38 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/should-you-worry-that-the-feds-no-longer-insure-your-money-market-fund/301/#17041_82675 2009-09-30T00:25:38Z http://moneywatch.bnet.com/investing/blog/fund-watch/should-you-worry-that-the-feds-no-longer-insure-your-money-market-fund/301/#17041_82587 Interesting post, Nathan, and one that addresses a lot of what's on people's minds. I'm surprised you didn't mention the size of the money fund, as most stories on this topic do. Bigger funds can presumably step up and make shareholders whole, rather than absorb the PR blow of breaking the buck. Tue, 29 Sep 2009 12:53:46 GMT http://moneywatch.bnet.com/investing/blog/fund-watch/should-you-worry-that-the-feds-no-longer-insure-your-money-market-fund/301/#17041_82587 2009-09-29T12:53:46Z