Actively Managed Investments – All About Mutual Funds

All About Actively Managed Investments

mutual funds

What if I told you that I am a world-class coffee brewer and my coffee tastes wonderful, better than all my competitors.  Since my coffee is so amazing I command a premium of over 17 times the national average price of $1.38 for a medium cup of coffee.  I charge between $24.00 and $34.00 per cup depending on the flavor.  That’s how freaking good my coffee is!
However, Here’s the embedded risk that you won’t know unless your read my product offering memorandum:

  • If I am able to pick the right coffee beans, at the right time and brew them correctly, then you will likely have above-average coffee for long periods of time.
  • I can’t guarantee my coffee will be “the best” all the time, in fact my coffee could taste far worse than the average cup of coffee on any given day.  Although, I believe it to be unlikely.
  •  There is upwards of a 50% chance my coffee will taste the same or worse that the average cup of coffee.

 

Knowing what I just told you, would you pay $24.00+ for a cup of my “maybe it will be great, maybe not” coffee? That’s asset management!

Well Ladies and gentlemen:  Welcome to the asset management business!

 

Please come and purchase my active mutual fund (i.e. premium coffee), but here’s what you won’t know unless your read my prospectus:

  • If I pick the right investments and buy and sell them at the right time, you will likely earn a superior return on your investment.
  •  I can’t guarantee your investment returns will be above greater market returns.
  •  There is an upwards of 50% chance that I will underperform the s&P 500 index.

 

Knowing what I just told you, would you pay $1,500+