Instead of eating up your brains, they devour your nest egg with high expenses and walking dead performance. They may be lurking within your 401(k)-type plan or individual retirement account.
When an equity mutual fund receives Lipper’s highest rating of five for consistently superior, risk-adjusted three-year performance — along with other funds in the top 20 percent of its category—it may catch your attention.
The following is a guest post by Lawrence Carrel, author of “ETFs for the Long Run” and “Dividend Stocks for Dummies.” The opinions expressed are his own.
The following is a guest post by Juliette Fairley. A frequent contributor to USA Today, Investor’s Business Daily, Bloomberg Wealth Manager and The New York Times, she is also the author of three personal finance and investing books. The opinions expressed are her own.
The people whose job it is to protect shareholders’ investments in mutual funds nowadays — members of fund boards of directors — not only may be called on to do more things than any time since the Investment Company Act of 1940 created their positions; but they also have more power than ever before when dealing with the managements whom they oversee.
In the late 1990s, the Asian currency crisis and Russia’s massive debt default crushed bonds issued in emerging markets in Asia, Europe and Latin America. Just three years ago, emerging market bonds tumbled as investors ran from anything that smelled of risk.
The industry insists that they are and banking regulators aren’t calling in the National Guard, although the U.S. Treasury Department is considering some emergency measures in case of a U.S. debt default.