Mutual Fund Analysis form
I created a tool to help in analyzing and comparing mutual funds. For those who know me well, that will be recognized as a virtual sacriledge. Most managed mutual funds underperform the market and you pay, on average, more than 4% per year in fees, commissions, and taxes. (Average for no load fund: Annual Fee=1.5%; 12b1 fee=.25%; Commissions=1%; Capital Gains Taxes=1.4%.) However, many investors own them (shudder, shudder)--that's reality. So, the tool is meant as a help in evaluating them and at least know whether the costs and returns are reasonable. version 1.07 updated 7-24-10
Click here if using Excel 2000-2003 Click here if using Excel 2007-2010 SAVE the file to your computer
A MUST READ ARTICLE: A very revealing article on mutual funds from Consumer Reports is MUTUAL FUNDS: THE OTHER BIG SCANDAL. Are you aware, $10,000 invested in an index fund for forty years would have grown, based on long-term averages, to over $900,000? That same amount, invested in the average managed mutual fund after forty years, would have grown to a little over $200,000 if 4% is used as a total cost in fees, commissions, and taxes. Folks, that's reality! The point is, YOU don't get to spend the $700,000 difference--it pays brokerage fees and expenses, and to taxes.
A book that might also be of interest is John Bogle's The little Book of COMMON SENSE INVESTING. Not too surprising Bogle suggests index funds as the better way to invest--and proves his point in the book. If you aren't interested in investing in individual companies, an index fund is a good way to go. And, yes, ETFs (Exchange Traded Funds) offer about the same costs as index funds and are an alternative--but watch out for trading fees. They can eat your lunch.