Comments on: 25 Rules to Grow Rich By #9: Mutual Fund Fees http://www.thesimpledollar.com/2006/11/23/25-rules-to-grow-rich-by-9-mutual-fund-fees/ Financial talk for the rest of us Sat, 16 Feb 2013 01:14:45 +0000 hourly 1 http://wordpress.org/?v=3.5.1 By: June Khin http://www.thesimpledollar.com/2006/11/23/25-rules-to-grow-rich-by-9-mutual-fund-fees/#comment-38738 June Khin Sun, 24 Jun 2007 19:26:14 +0000 http://www.thesimpledollar.com/2006/11/23/25-rules-to-grow-rich-by-9-mutual-fund-fees/#comment-38738 Actually the basis for Money’s rule is the fact that a majority of funds that perform well in one period tend to fall near the bottom the next. Usually, performance is not exclusively indicative of the manager, but of the technique being in favor. However, by going with lower fees, you can maximize your return over the long haul, as they drag down performance.

]]> By: Colin G http://www.thesimpledollar.com/2006/11/23/25-rules-to-grow-rich-by-9-mutual-fund-fees/#comment-1385 Colin G Tue, 19 Dec 2006 22:34:48 +0000 http://www.thesimpledollar.com/2006/11/23/25-rules-to-grow-rich-by-9-mutual-fund-fees/#comment-1385 Your rule only allows one to compare based on past performance, and as we all should know by the required legal disclosure, that is not a guarantee of future returns.

For actively managed funds. Your rule is probably as reasonable as can be formulated.

But for passively managed funds, you should choose one of the lowest fees available. For some broad market indexes, that can be as low as 0.2%, but for less broad or more obscure indexes, it could be in the 0.5 to 1% range.

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