Our recent research on how to select top performing mutual funds has made the news again, this time in a column in Kiplinger’s Personal Finance, “New Findings on Fund Fees”. (The study was also featured in the October 2011 New York Times article “The Best Investing Advice? Not the Conventional Method”.)
In Kiplinger’s, FundX portfolio manager Sean McKeon explained that “fees do matter – a lot.” But he noted that our research shows that other factors matter more.
What about Morningstar’s assertion that low expense funds have better performance? McKeon pointed out our study looked at individual funds, while Morningstar’s study considered the expenses of groups of funds. “In aggregate, low fees seem to matter,” McKeon said, “but people aren’t buying all funds.”
If you’d like to read our study of 306 mutual funds, click here to download our white paper. We shared some of the results of the study in this post, Do Fund Expenses Matter?