Fashionable Mutual Funds
These days, investing in mutual funds has become something of a fashionable thing to do. You read one some sites that Bond Funds need to be sold in favor of dividend funds. Yet if you look at the year to date performance on many top rated bond funds you will quickly see that they have outperformed the dividend funds. How is this possible? Well, those dividend funds that have seen millions of dollars flowing in to them have had to go to the market and start buying up those domestic dividend paying stocks. The result: they drove the price up. The consequence: you paid too much. Besides, with low rates, bond funds are actually doing OK.
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