Choose mutual funds and ETFs with a minimum portfolio size that is economical
If you are going to invest in actively managed funds, then you should want them to have a sufficiently large asset base to fund the necessary research.
If an active fund is too small, then fund management quality can suffer or fees could grow. Passively managed index funds and ETFs do not have the significant overhead that active funds have associated with personnnel to evaluate investment alternatives. Because of their much lower analytic costs, the minimum size of passively managed index funds and ETFs can be less an issue than it is with an actively managed fund.
Please read this article on our new Best No Load Funds website for more information:
Avoid Very Small Mutual Funds and ETFs
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