|
A friend who has just started investing, asked for some suggestions, and I told him I would look up the info on the funds his broker sold him within the last few years.
I looked his blue chip fund (KBCAX) up on the Scudder website and found expense ratio (1.11%), ytd (Oct. 31) returns including class A sales charge (3.46%) and ytd returns without sales charge (9.78%). I looked this up on Marketwatch to compare to peer group and s&p index, and it has obviously underperformed in almost all of the time periods listed. Is it just the load that has made it underperform, or are there more fees than just the 1.11 expense ratio hidden somewhere?
I think he realizes it is silly to keep paying a load on his monthly automatic investments. He is trying to decide, though, if he should keep the 15-20k that he's already paid the load on in there, and just move his new investments to an index, or if he should take all the money out and move it to an index...
Another thought is: this guy is 38, is a blue chip fund a good investment choice for him?
Thanks for any advice.
|
Threaded Mode
