Chap 10
Help!
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| mutual funds | makes big funds avail to small investor
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| Open end fund |
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| closed end fund |
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| modern fund traps | load fund, also attach other ongoing charges, can be front or back or ongoing loaded,
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| morningstar procipia pro fund software | software packet that allows you to compare mutual funds
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| Neither is your mutual fund a friend | not a buddy
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| Investment act of 1940 |
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| fund company more closely alligned with the investor | funds pay particular atten to fund performance,
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| are funds your friend better than brokers? | not necessarily, they have mgmt fees that have grown from .99% to 1.57%
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| fee trend | should be less because of economies of scale, the increase is scandalous
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| what is the brokers advantage over the fund company | the river of cash to the broker is much better hidden than that to the fund company.
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| what accounts for the differences among fund companies | the ownership and way they run them. They operate for the parent company and have the same philosopy as Louie the XIV with the tax collectors, "extract the most amount of feathers from the goose with the least amount of hissing."
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| Fidelity is different in it's structure | privately owned by Ned Johnson and family, their fee structure is a bit less than the others
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| Vanguard | fees are still lower than others, offers THE lowest fees by a long shot
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| Why does Vanguard offer lowest fees? | Jack Vogel, hired by walter morgan, broke off from morgan, who fired him, and created Vanguard.
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| service company | created by Vogel, Vanguard was the first to come up with the service company, shareholders were Vangurards owners.
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| policy holders own the company | this is also true with mutual insurance companies, this type of company is disappearing though
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| Vanguard became the first and only Mutual fund company owned by it's shareholders | true
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| 1976 | first retail index fund,
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| Vogel calculated by hand the average return of the average mutual fund, 1.5% less than the S&P 500. | true, so Vogel made available to the public and index fund with a small expense ratio or 0.46%, he eliminated sales fees and made all of his funds no load.
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| the 3 essential tools that would forever change the investment world, this is what Vogel had put together. | 1. a mutual ownership structure
2. a market index fund
3. fund distribution system free of sales fees
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| benefits of Vanguard | got benefits of economies of scale, attracted more assets, by 1992 expenses on vanguard fell below .2%
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| fidelity Spartan's series and charles schwabb | fees similar to Vanguard, but none as good as vanguard
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To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
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