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Post by oldskeet on Aug 10, 2021 14:38:41 GMT
Bankrate selected its top funds based on the following criteria, and included only funds that were investible for regular investors (i.e., not those with $5 million minimum investments): Five-star U.S. stock funds according to Morningstar, for quality No sales load (i.e., commission), in order to reduce costs 5-year performance better than the Standard & Poor’s 500, which has historically returned about 10 percent annually on average An expense ratio less than 0.5 percent, to minimize ongoing costs Funds where the manager has been at the helm for more than five years, to ensure stability Then we sorted the results by the top performers year to date www.bankrate.com/investing/best-mutual-funds/ |
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dily
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Post by dily on Aug 10, 2021 17:26:34 GMT
From linked article: Sometimes you may have to compare two funds, one with higher long-term performance and a higher expense ratio and the other with lower performance and a lower fee. So consider if paying the higher fees is worth the extra return. One quick method to check: subtract the fund’s expense ratio from its long-term return to see which offers you the best returns after fees.
This advice seems dubious as reported mutual fund returns are net of fees to begin with. Correct?
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Post by yogibearbull on Aug 10, 2021 17:45:19 GMT
From linked article: Sometimes you may have to compare two funds, one with higher long-term performance and a higher expense ratio and the other with lower performance and a lower fee. So consider if paying the higher fees is worth the extra return. One quick method to check: subtract the fund’s expense ratio from its long-term return to see which offers you the best returns after fees. This advice seems dubious as reported mutual fund returns are net of fees to begin with. Correct? Great! You found an error that the author, editor and reviewer missed. Author has email address, jroyal@redventures.com |
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dily
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Post by dily on Aug 10, 2021 17:59:06 GMT
Thanks, Yogi. I sent Mr. Royal an email.
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dily
Ensign
Posts: 7
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Post by dily on Aug 10, 2021 18:25:51 GMT
Kudos to bankrate.com for their quick reply to my email.
Thank you for bringing this to our attention. We've adjusted the text.
Best,
James Royal
They deleted the offending sentences and replaced them with: “As the old investor saying goes, “Fees are certain but returns are not.”
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Post by anitya on Aug 10, 2021 18:37:57 GMT
Kudos to bankrate.com for their quick reply to my email. Thank you for bringing this to our attention. We've adjusted the text. Best, James Royal They deleted the offending sentences and replaced them with: “As the old investor saying goes, “Fees are certain but returns are not.” I did not read the original article but I recommend not reading no new articles from a source that lets the original mistake go through and the way they handled (inadequate) when the mistake was pointed out. I am close to putting posters with similar behavior on Ignore / block - that is my threshold for entertaining BS, yours may vary. |
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