Date: 5th October 2016
Author:
Type: In the news
Whereas at first sight mutual funds are a global success with assets growing seven-fold in two decades (1993 to 2013), mutual fund reveal structural weaknesses potentially rendering them obsolete.
Because many fund managers set entry/exit fees too high and because funds are prone to substantial liquidity problems, collective investment schemes could be replaced by cheap, tradeable stock baskets in the near future.
“The world’s largest investors don’t use mutual funds: they insist on their own, flexible managed accounts. What if smaller investors could follow suit? It turns out that they now can.”
Please read the full opinion article to find out how on Paul Amery's blog.