The big bad world of mutual funds

BIG BAD WORLD OF MUTUAL FUNDS

I made my first investment in mutual funds on Nov 5, 2004. It was a tax saving mutual fund.

Before that, I was investing in stocks too. I invested in a few including an IPO. But stock investing was too much to handle for me. Given my laziness I could never make the effort to build a decent stock portfolio. (Yes, I believe it takes work.) I sold the IPO soon after pocketing some nice listing gains.

Now, the next best option was investing through equity mutual funds. I invested these ready made stock portfolios managed by some of the best minds, read, fund managers.

It has been so far, so good.

However, for the last few weeks I have been thinking, in fact rethinking, my decision.

I have been evaluating the other side of mutual funds. Yes, they have a lot of good features but then every coin has two sides.  Here is what is going on in my mind. 

Read more