Original Cin

My roommate and I were talking about this topic – The Motley Fool on “What’s Wrong With Mutual Funds?“:

Here’s our oft-repeated fact that you should get through your head: The average actively managed stock mutual fund returns approximately 2% less per year to its shareholders than the stock market returns in general. That means that before your dollar even gets to the fund manager to invest, his company has already taken two cents off the top.

I disagree with the Motley Fool on a fair number of things, but they’re spot-on here regarding the average fund.