When a fund is turning over the stocks in your mutual fund like a rotisserie chicken, you pay dearly for it. I recently analyzed a fund mix on the popular Fidelity funds on a 401k palet. The average turnover was just under 200%! This translates into over 4% cost inside the fund in a single year. This cost comes after a market decline of 39% and under-performance of over 10% against market benchmarks. What should have been around a 40% drop in value translated into a 54% drop in this fund mix!
What Does 200% Turnover Mean to You?
This entry was posted in Free Market Television, Mutual Funds, Speculators and tagged Evan Vanderwey, Speculation, Turnover. Bookmark the permalink.