Welcome to the Mutual Funds Resource Center
Disadvantages of mutual funds
Fund management fees may be unreasonable for the services rendered. The
investor must rely on the integrity of the professional fund manager. In
some cases the fund manager may not pass on transaction savings to the
investor. The fund managers are not liable for fund losses due to poor
judgment on their part. The fund managers may make so many transactions
in the fund that high fee/cost result and are passed on to the investor.
Prospectuses and Annual reports are hard to understand. Restrictions on when and how an investor
sells/redeems his mutual fund shares. The investor may feel a loss of
control of his investment dollars.
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