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发帖数: 11530 | 1 Cramer: Beware funds trying to steal your money
Jim Cramer's head is spinning with all of the options out there for mutual
funds and exchange traded funds (ETFs). How the heck are investors supposed
to know which ones to invest in when there are so many of them?
"The important thing is this: You have all sorts of ETFs and mutual funds
out there, and they can all advertise. The companies that run these funds
want your money. And of the biggest mistake you can make as an individual
investor is to give it to them, with a few significant exceptions," the "Mad
Money" host said.
If you are an investor who owns mutual funds, Cramer thinks you're probably
getting hosed. There is just no other nice way to put it.
Disclaimer: Cramer is not referring to all mutual funds; his main beef is
with the actively managed mutual funds where there are people deciding the
stocks and securities to buy and sell.
Why? Because these managers don't get paid for delivering performance, they
collect a fee from investors regardless of the amount of money they make for
their client. The amount of money they make depends on the size of assets
that are under management. That means their biggest incentive is not for an
investor to do well; it is how much of your money they can bring in.
To make matters worse; mutual funds also charge some of the highest fees in
the business.
Cramer recommended that the best strategy is for an investor to manage their
own portfolio of individual stocks. But for those who do not have the time
or do not want to do so, Cramer has a few tips to invest in mutual funds.
"You want a cheap, low-cost fund that mirrors the market as a whole. One
that mimics the Standard & Poor's 500 (INDEX: .SPX)," the "Mad Money" host
said. "Index funds have ultra-low fees, and with an S&P index fund, you've
got a vehicle that will let you participate in the strength of the stock
market without having to spend the time picking individual stocks."
As for ETFs, these are bad news, too, for those who are not market pros or
managing a portfolio of individual stocks. Many ETFs rebalance every day,
which can beat down any long-term performance.
One exception is the GLD (NYSE Arca: GLD) ETF, as Cramer thinks of it as a
simple way to play gold. But, in general, Cramer does not recommend playing
around with ETFs.
"At the end of the day, I think a cheap S&P 500 index fund is the least bad
way to passively manage your money—better than the vast bulk of actively
managed funds," he added.
Cramer thinks an investor can beat the performance of an index by picking
the stocks themselves. However, if you are not up for that task, steer clear
of managed mutual funds and ETFs. | F****s
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