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<blockquote data-quote="Jones" data-source="post: 1259964" data-attributes="member: 4805"><p>I'm probably not being clear.</p><p>I got no beef with mutual funds in general, in fact <em>all</em> my retirement savings are currently in mutual funds. I don't like <em>actively managed</em> mutual funds because:</p><p>1) They charge higher fees (to pay the fund managers)</p><p>2) They almost never, ever beat the lower cost index funds over the long term (and even on the very rare occasions that they do the higher returns are quickly eaten up by the higher fees)</p><p>The BH funds are a <s>good</s> perfect example, their fees are 10X more than the 500 index and I can guarantee you with almost absolute certainty that the 500 index will beat every single BH fund in returns, by a significant margin, over a 20 year period. The argument that they are a good choice for people who want to just put their money in one fund and not worry about it for years is specious, as you can do the exact same thing with 500 index. If they were the the only choice we had in the 401K then yes they would be a good choice but as it stands they are only a good choice if your goal is to literally give money away.</p></blockquote><p></p>
[QUOTE="Jones, post: 1259964, member: 4805"] I'm probably not being clear. I got no beef with mutual funds in general, in fact [I]all[/I] my retirement savings are currently in mutual funds. I don't like [I]actively managed[/I] mutual funds because: 1) They charge higher fees (to pay the fund managers) 2) They almost never, ever beat the lower cost index funds over the long term (and even on the very rare occasions that they do the higher returns are quickly eaten up by the higher fees) The BH funds are a [S]good[/S] perfect example, their fees are 10X more than the 500 index and I can guarantee you with almost absolute certainty that the 500 index will beat every single BH fund in returns, by a significant margin, over a 20 year period. The argument that they are a good choice for people who want to just put their money in one fund and not worry about it for years is specious, as you can do the exact same thing with 500 index. If they were the the only choice we had in the 401K then yes they would be a good choice but as it stands they are only a good choice if your goal is to literally give money away. [/QUOTE]
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