Quote:
Originally Posted by Slava
This is a good summary, but you could always buy a deferred charge fund...the money will be sitting for 30 years anyway, so why pay the upfront fee? You will get the same management and same expertise, but also have your full initial investment.
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Or you buy an ETF and pay about 1/10 the management fee without a charge (other than $20 to buy through your brokerage account). There are now ETF's that track just about every sub-index or commodity worldwide, and they have tiny management fees (typically about 0.2% for the ones I own). It is very hard for a fund to outperform an ETF over the long term, and the flexibility an ETF provides is also nice IMO. I personally find them very handy to get exposure to markets where I don't have the time/inclination to investigate individual stocks, as opposed to mutual funds which I have purged entirely from my portfolio.