Note: If you would prefer the print version click here to read Investing Insights: Are Mutual Funds A Good Investment?
In this quarter’s Investing Insight, I am going to answer the important question, are mutual funds a good investment? Let me cut to the chase…no they are not. Mutual funds are the sacred cow of the largest investment firms, believe me, I do not make any friends among investing peers when talking about this topic. However, I have always believed that investment decisions should not be driven by the status quo within the industry, but that any investment approach should be able to stand up to the rigors of evidence-based analysis. I
Show Notes
Data Sources:
[1] Wanger, Ralph. “A Zebra in Lion Country: the ‘Dean’ of Small-Cap Stocks Explains How to Invest in Small, Rapidly Growing Companies Whose Stocks Represent Good Values.” A Zebra in Lion Country: the “Dean” of Small-Cap Stocks Explains How to Invest in Small, Rapidly Growing Companies Whose Stocks Represent Good Values, Touchstone, 1999, pg. 14.
[2] Liu, Berlinda, and Aye Soe. “SPIVA Persistence Scorecard.” S&P Dow Jones Indices SPIVA Research, Sept. 2018, https://us.spindices.com/documents/spiva/persistence-scorecard-september-2018.pdf.
[3] Active/Passive Barometer, Morningstar Direct
Podcast Disclosure:
3Summit Investment Management is a registered investment adviser and the opinions expressed by 3Summit on this show are their own. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.
Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.
Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.
