Today in class we learned that we shouldn't pay sales commissions for funds because you lose a lot of money from it. In a taxable or non-taxable account, the lower the expense ratio, the higher the probability of high performance. This is because funds which have succeeded in the past usually don't usually succeed in the future. And you usually end up having to pay a lot in the end. Also, you should never touch funds with load fees, so if you compare different funds and one of them has load fees and the other doesn't, it would be better to go with the one with none. To check the expenses of funds, the best website to use would be morningstar.com. In class, we compared fidelity, Franklin, JP Morgan, and Vanguard for their small cap, large cap, and balanced funds. A website that affirms these things is http://www.cbsnews.com/8301-505123_162-37640470/the-best-predictor-of-future-fund-performance/ .
I read Tamara's Latest Blog Post and I realised that I had missed out the fact that "The other plus side to the low expense ratio is usually they come with low risk and made on average 1% more than high expense ratio funds." in my blog post.
I read Tamara's Latest Blog Post and I realised that I had missed out the fact that "The other plus side to the low expense ratio is usually they come with low risk and made on average 1% more than high expense ratio funds." in my blog post.
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