Posted by on Dec 19, 2016 in Articles & Advice, Blog, Featured, Posts |

By Jason Zweig | Dec. 14, 2016 9:00 pm ET

Image credit: “The Sleeping Merchant Robbed by Monkeys,” engraving after Pieter Bruegel the Elder, ca. 1600-1650, Rijksmuseum

 

 

The decline of the mutual-fund industry, so compellingly documented by my colleagues at The Wall Street Journal, didn’t happen overnight.

You should have heard the squawks of protest from mutual-fund managers when I wrote this article many years ago, warning that funds were far too expensive and that investors would eventually desert them if they didn’t cut their fees. If more fund executives had listened to their investors back then, when cutting fees wouldn’t have hurt nearly as much as it does today, everyone would have been a lot better off.

My article wasn’t subtle. But the problem wasn’t either.

Your Funds May Be Making You Rich…But You’re Also Getting Robbed

This year, $1 out of every $5 investors pay in fees — at least $5 billion — will be wasted on overpriced funds. Here’s how to protect yourself from the great fund stickup.

Money Magazine, February 1997

 

Related:

Why Do Mutual Funds Cost So Much?

The Difference Between an Investment Firm and a Marketing Firm

The Incredible Shrinking Fund Managers