Not a Fan of Mutual Funds? Here’s Why I’m Not Either

Mutual funds are marketed as a “long-term investment solution,” but is that really how investing works when it comes to stocks and equities? ??

Here’s my investing philosophy when it comes to mutual funds: they’re not worth the exorbitant fees.

Let me break it down:

1?? High Onboarding Fees: The moment you invest in a mutual fund, you’re already in the red with onboarding fees ranging from -2% to -5%. That means your fund has to outperform just to break even—and that’s not a guarantee.

2?? Annual Maintenance Fees: Here’s the kicker: even if the fund is losing money, you’re still charged an annual management fee! This doesn’t incur any extra cost for the mutual fund managers to maintain their positions, yet it’s billed as though they’re doing you a favor.

3?? Profits for Them, Risks for You: These fees add up as pure profit on their balance sheets, while your portfolio bears all the risk.

4?? Conflict of Interest: Mutual funds are sold with the narrative, “You don’t know what you’re doing, so let us manage it for you.” But let’s be real—when the market is in its prime or when it is crashing, no one helps you exit at the right time. Why? Because agents lose their commissions if you cash out early.

If mutual funds work for some people, great. But for me? I’d rather invest where I can control my fees, strategy, and timing.

What are your thoughts? Am I missing something here, or do you agree that mutual funds are outdated for today’s markets?

#InvestingPhilosophy #MutualFunds #Fees #StockMarket #FinancialFreedom