Mutual Funds celebrating 100 years...still the best way in invest?
Mutual funds reduced the barrier to entry for the everyday investor. More people were able to invest than ever before with the introduction of the mutual fund in 1924. This was a positive for society as more and more people were able to growth their wealth.
Change impacts all industries, especially over 100 years. Is the mutual fund still the best way to invest money like it was in 1924?
There has been a long and steady shift away from mutual funds to other investment vehicles, most notably exchange traded funds (ETFs). The biggest for this...cost. ETFs have lower costs to operate, the saving is passed on to the investor. If you can own an investment that looks, acts, and performs the same as a mutual fund but for a lower cost through an ETF, there is a very strong chance your returns will improve.
I am not suggesting mutual funds are terrible and you should sell your mutual funds and rush into ETFs. I would suggest however, you discuss ETFs with your Financial Advisor.