Dirty Secrets About Mutual Funds

Dirty Secrets About Mutual Funds

BY

James Burns, Esq.

Americans have turned to the quick fix investment known as a Mutual Fund.

In recent commentary, insiders have adopted the following opinions on mutual funds. “Most investors in mutual funds have no idea what they are invested in, which is the way the industry wants it.” In addition, mutual funds are troubled because the rewarded for the amount of money they Attract, not the amount of money they earn.

SEC Chairman Arthur levitt, Jr. warned of growing unfairness in the relationship between individual investors and mutual funds in January 2001. Mr. Levitt made the following comment:

“THERE ARE A NUMBER OF INSTANCES THAT, QUITE FRANKLY, DO NOT HONOR AN INVESTOR’S RIGHTS. INSTANCES WHERE…HIDDEN COSTS HURT AN INVESTORS BOTTOM LINE, WHERE SPIN AND HYPE MAKE THE TRUE PERFORMANCE OF A MUTUAL FUND, AND WHRE ACCOUNTING TRICKS AND SLEIGHT OF HAND DRESS UP A FUND’S FINANCIAL RESULTS”

There are, in effect, FIVE separate bills that mutual funds charge.

If you would like to get full copy of this article contact the author. We evaluate plans for cash flows using the age old principals of leverage and arbitrage to rebalance a portfolio and we include real property investment analysis.


James Burns, Esq.
Attorney at Law
LEGAL WEALTH CONDUIT
“The Complete Solution”
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Irvine, CA. 92612
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