Avoid very large actively managed mutual funds

Big mutual fund portfolio positions and higher percentage ownership of any company’s bonds or common stock are not good things for actively managed mutual funds. 

These big positions and high percentages not good for you, either. Large size constrains how a fund can trade and how efficiently it can do so. When an actively managed fund becomes very large, it must manage its trading exceptionally well or it will suffer significantly higher transactions costs, which tend to cause lower net performance.

Please read this article on our new Best No Load Funds website for more information:

Avoid Large Actively Managed Mutual Funds

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