Comments on: The Importance of Mutual Fund MERs http://www.canadiancapitalist.com/the-importance-of-mutual-fund-mers/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Alberto http://www.canadiancapitalist.com/the-importance-of-mutual-fund-mers/#comment-189483 Alberto Sat, 18 Apr 2009 11:17:47 +0000 http://www.canadiancapitalist.com/2007/04/29/the-importance-of-mutual-fund-mers#comment-189483 could someone explain to me the importance of mutual funds to investors and its classification, and benefits mutual funds offer to investors please. could someone explain to me the importance of mutual funds to investors and its classification, and benefits mutual funds offer to investors please.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/the-importance-of-mutual-fund-mers/#comment-32998 Canadian Capitalist Wed, 02 May 2007 21:56:22 +0000 http://www.canadiancapitalist.com/2007/04/29/the-importance-of-mutual-fund-mers#comment-32998 Houska: A diversified portfolio <em>and</em> low-costs are <em>both</em> important. You can't ignore either of them and hope to be a successful investor. There is no research backing up the claim that MERs don't matter and buying a high-MER fund is almost always a bad deal. Houska: A diversified portfolio and low-costs are both important. You can’t ignore either of them and hope to be a successful investor.

There is no research backing up the claim that MERs don’t matter and buying a high-MER fund is almost always a bad deal.

]]> By: Big Cajun Man http://www.canadiancapitalist.com/the-importance-of-mutual-fund-mers/#comment-32920 Big Cajun Man Wed, 02 May 2007 15:16:48 +0000 http://www.canadiancapitalist.com/2007/04/29/the-importance-of-mutual-fund-mers#comment-32920 Every point they make, you lose, it's a zero sum game, they either give you the money, or they take it themselves. Anybody who wants you to take a high MER mutual fund, must have invested in the Funds Parent company or gets a commision from them (mostly). 'Nuff said --C8j Every point they make, you lose, it’s a zero sum game, they either give you the money, or they take it themselves.

Anybody who wants you to take a high MER mutual fund, must have invested in the Funds Parent company or gets a commision from them (mostly).

‘Nuff said –C8j

]]> By: ThickenMyWallet http://www.canadiancapitalist.com/the-importance-of-mutual-fund-mers/#comment-32759 ThickenMyWallet Tue, 01 May 2007 22:58:38 +0000 http://www.canadiancapitalist.com/2007/04/29/the-importance-of-mutual-fund-mers#comment-32759 There is a real structural issues about fees in the Canadian context that I am discovering. See www.thickenmywallet.com for details. It ain't pretty that's for sure. There is a real structural issues about fees in the Canadian context that I am discovering. See http://www.thickenmywallet.com for details. It ain’t pretty that’s for sure.

]]> By: Houska http://www.canadiancapitalist.com/the-importance-of-mutual-fund-mers/#comment-32754 Houska Tue, 01 May 2007 22:10:55 +0000 http://www.canadiancapitalist.com/2007/04/29/the-importance-of-mutual-fund-mers#comment-32754 The remark on MER be damned, diversified portfolio matters is not that idiotic when taken in the right context. Sure, all else being equal, every .1% in average portfolio MER drags down returns. However, I think the original poster's point could be taken in a positive light as saying "if you are trying to put together a portfolio that needs to beat not 0% but 4% (the post-tax hurdle if you have a 6% HELOC), it is doubly important that you have a well-diversified portfolio of investments to minimize the volatility. Getting this diversification can be worth buying a higher-MER investment to make it be more optimal. Furthermore, if you have limited time to dedicate to finding the optimal investments, you will do better to pay a higher MER and spend your time creating a balanced portfolio than chasing the lowest MER but not thinking through risk diversification". That's a longer statement, and more nuances, but I think (I hope) that's what the poster had in mind. The remark on MER be damned, diversified portfolio matters is not that idiotic when taken in the right context. Sure, all else being equal, every .1% in average portfolio MER drags down returns. However, I think the original poster’s point could be taken in a positive light as saying “if you are trying to put together a portfolio that needs to beat not 0% but 4% (the post-tax hurdle if you have a 6% HELOC), it is doubly important that you have a well-diversified portfolio of investments to minimize the volatility. Getting this diversification can be worth buying a higher-MER investment to make it be more optimal. Furthermore, if you have limited time to dedicate to finding the optimal investments, you will do better to pay a higher MER and spend your time creating a balanced portfolio than chasing the lowest MER but not thinking through risk diversification”. That’s a longer statement, and more nuances, but I think (I hope) that’s what the poster had in mind.

]]> By: wallstdennis http://www.canadiancapitalist.com/the-importance-of-mutual-fund-mers/#comment-32508 wallstdennis Mon, 30 Apr 2007 21:32:03 +0000 http://www.canadiancapitalist.com/2007/04/29/the-importance-of-mutual-fund-mers#comment-32508 Investors looking for the latest interviews and podcasts with high profile executives and stock market experts check out <a href="http://radio.wallst.net/index.asp" rel="nofollow"> WallStRadio </a>. Some of the most recent episodes include interviews with the editor of Controlledgreed.com, analysts Charles Payne and Roger Nussbaum, and an exclusive interview with Miguel Hernandez, Sales Director of Palm Latin America for Palm, Inc. Please check out <a href="http://radio.wallst.net/index.asp" rel="nofollow"> WallSt Radio</a>. Investors looking for the latest interviews and podcasts with high profile executives and stock market experts check out WallStRadio .
Some of the most recent episodes include interviews with the editor of Controlledgreed.com, analysts Charles Payne and Roger Nussbaum, and an exclusive interview with Miguel Hernandez, Sales Director of Palm Latin America for Palm, Inc.

Please check out WallSt Radio.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/the-importance-of-mutual-fund-mers/#comment-32466 Canadian Capitalist Mon, 30 Apr 2007 14:36:42 +0000 http://www.canadiancapitalist.com/2007/04/29/the-importance-of-mutual-fund-mers#comment-32466 I just got my copy of this month's <em>MoneySense</em> magazine and in page 15, there is a column titled - "Pay less, get more". The author, Duncan Hood, cites research in the US and Canada and says: "For every percentage point your fund company charges you in fees, your return goes down by one percentage point". I just got my copy of this month’s MoneySense magazine and in page 15, there is a column titled – “Pay less, get more”. The author, Duncan Hood, cites research in the US and Canada and says:

“For every percentage point your fund company charges you in fees, your return goes down by one percentage point”.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/the-importance-of-mutual-fund-mers/#comment-32461 Canadian Capitalist Mon, 30 Apr 2007 14:20:17 +0000 http://www.canadiancapitalist.com/2007/04/29/the-importance-of-mutual-fund-mers#comment-32461 Steve: I am not planning on implementing the SM either and I am very wary of leveraged investing in the stock market. Buffett is fond of saying that "the markets can stay irrational longer than you can stay solvent" and I hope investors are aware of what they are doing. Mike: Of course, there is a bit of self-interest involved in claiming that MERs don't matter. If future equity returns trail that of bonds, people who implemented the SM would wish they'd never heard of it. Steve: I am not planning on implementing the SM either and I am very wary of leveraged investing in the stock market. Buffett is fond of saying that “the markets can stay irrational longer than you can stay solvent” and I hope investors are aware of what they are doing.

Mike: Of course, there is a bit of self-interest involved in claiming that MERs don’t matter. If future equity returns trail that of bonds, people who implemented the SM would wish they’d never heard of it.

]]> By: Mike http://www.canadiancapitalist.com/the-importance-of-mutual-fund-mers/#comment-32452 Mike Mon, 30 Apr 2007 12:31:06 +0000 http://www.canadiancapitalist.com/2007/04/29/the-importance-of-mutual-fund-mers#comment-32452 <i>The best portfolio is a diversified portfolio, MER be damned.</i> This is the stupidest comment I've ever heard. Is he saying that you can't have a diversified portfolio without high MERs? Or is he really saying "I'm maximizing my compensation at your expense but don't worry about it". I would fire this guy if he was my FA. I put a much longer SM rant on the comments section of that blog. The best portfolio is a diversified portfolio, MER be damned.

This is the stupidest comment I’ve ever heard. Is he saying that you can’t have a diversified portfolio without high MERs? Or is he really saying “I’m maximizing my compensation at your expense but don’t worry about it”.

I would fire this guy if he was my FA.

I put a much longer SM rant on the comments section of that blog.

]]> By: Steve Heath http://www.canadiancapitalist.com/the-importance-of-mutual-fund-mers/#comment-32451 Steve Heath Mon, 30 Apr 2007 11:53:19 +0000 http://www.canadiancapitalist.com/2007/04/29/the-importance-of-mutual-fund-mers#comment-32451 My father used to tell me, "if you're going to do something, do it right." I find it hard to believe that someone will take on the leverage risk and all the extra work of the SM for the sole purpose of tax breaks, they're doing it to maximize their net worth, and that also involves watching the pennies on the investment side. That said, I too am an incorrigible skeptic :) Or at least emotionally unprepared to ever do it myself. I'd prefer to plan sooner to achieve my goals than add risk and leverage. My father used to tell me, “if you’re going to do something, do it right.” I find it hard to believe that someone will take on the leverage risk and all the extra work of the SM for the sole purpose of tax breaks, they’re doing it to maximize their net worth, and that also involves watching the pennies on the investment side.

That said, I too am an incorrigible skeptic :) Or at least emotionally unprepared to ever do it myself. I’d prefer to plan sooner to achieve my goals than add risk and leverage.

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