There are some basic things you should know that in the general and specific funds, you will have to invest in mutual funds. And poverty, the history of investment funds was disbanded. To absorb the assets of these funds to other funds and fund managers have been given new fund management. In addition, the average fund managers have limited experience.

Mutual fund companies do not want the poor performance of the funds in its family of long-term fund. Ineffective in reducing the average return of its funds. In addition, financial resources, makes the fund's asset class in the fund to the performance comparison between the best, rather than one after another at the bottom of the list. For example, if you look at the 50 large-cap growth funds relative performance of the first to see ABC's rate of return on the fund over the past five years, 19% a year on average, and certain funds have lost 2% a year on the same period, the investment of your money? In a certain company's boss does not ignore the fact that in this type of funding, to attract new investors, is likely to have investors who have lost.

The company hopes to provide a stronger and more attractive to this type of funding. Therefore, after several years of low performance, low-income funds will disappear, because the fund is completely dissolved and its assets with another fund combined. The fund manager will normally manage another fund. If you own shares in the host country, your account will receive a poor performance through the transfer of toxic assets. Your fund manager will try to download these assets quickly.

Once gone, the Fund performed poorly in the family to increase the fund's average performance. Non-performing assets were placed in a larger fund, they are less obvious and sales so that all simply add to host fund assets. They are without prejudice to the receipt of funds (in fact, as a manager bonuses), and does not damage the company's credibility.

On the other hand, you can buy a small fund, have been working for three years, very good. The company has a fund manager to be placed in a more visible place, then for you to attract more capital to the fund family. This is to promote a more in-depth management compensation managers (and better wages), in the company's best interests. You can end on a fund manager who was so bad for his fund to rescue buried in the company's revenue in the face. If you follow the new high-performance, fund managers may find that you can run, and before the size of the fund is greater. However, it may work better than low performance management who have inherited their stay.

Keep in mind that this switch and the integration process, when we compare the performance of mutual fund families, or reading the financial press that the average growth fund, 18% rate of return last year. The median is always biased, the poor performance are eliminated, so that their performance is not the fact that average. Mediocre managers to make the shift to smaller funds, including a record of their managers have more fund management. Investors can buy small, since the departure of the administrator who made the performance of the stock. They do not know that the Fund has a new manager, his job performance, is the company's embarrassment. The fund's performance, the magnificent little can now dropped sharply.

If there is no genuine investors excavation, but it is difficult to know whether the Fund's performance over the past decade, the fact is the current manager's efforts. Is no longer the manager stockdisciplines account. com, but my duty, when we do business, one is to require a common fund and raised many questions. When the Leaf Star selection population, investors often will follow up. Funds do not like the failure of assets. Therefore, I realized that in the next few years, more and more money that the "manager" is "Commission." I found that the distribution of more and more the work of a committee of the star stock-picking fund management. Thus, when a law enforcement action, select the device the upper left corner, he or she replaced, but "it still managed the Fund Board." This reduction in transparency, but the funds in the accounts will be transferred in other forms. As far as we know, this practice continues to expand around the fund management world. These funds will seek to exploit the advantages of celebrity star performances, until he or she left. Then, the focus has become a "one committee is the management of the Fund has been managing the fund." Although people come and go, but still.

The problem here is that you never Commission as an action star collection of features. They can not because the representatives of the Commission, from a group of people the best idea. What makes an actor's star "star" is that their choices are above average and better defined. Its peak and their time is the exception, rather than "the results of group think." This is how the trend in the management of the fund business in the mediocrity of the back of an excellent long-term assets to long-term preservation fund the wishes of success stories . It has the idea. In a class of 100 students, perhaps 5 to achieve a level of excellence, which marks for their excellent performance. In any class, only a few could be pending against other classes. If 50 is not in their class in order to merge the top 10 students to write an article, the end result may be a good test, but not as well the highest award category. The fund aims to promote a number of heads are better than one idea. While the idea seems logical on the surface is not correct. Although when it comes to like the material strength is not correct something, talking about creativity or genius. 500,000 thinkers means will be unable to merge their intellectual resources to achieve the theory of relativity. Here, one is bigger than most.

Conclusion is that to be very careful before putting hard-earned money to exercise mutual funds. Called to the Fund and request performance history. Be specific. A complete refund request, at least five years, the annual capital gains distribution and income distribution. Attempt to identify the managers often be replaced, when they made the final changes. We asked only that the manager of the past, when he or she left. And then ask the manager before, when the manager left. To ensure that all of the issues, see who is the Fund's current leadership and management is how long he or she had at that position. If the administrator has not had five years or more of the funding requested, he or she did before. Go to the library and check the time, in charge of Director (Morningstar is an excellent resource for the performance of these funds only). If the Fund is administered by a committee can not expect good performance. In addition, the average yield may be the best managers who do not know of any thing done.
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