Quote:
Originally Posted by Rain Man
In the long run, I've got enough diversification that I'd rather buy stocks once for a $5 purchase fee, and then not pay fees every year so some mutual fund manager can go gambling (or charge me to rebalance an index fund). There's some rebalancing to be done occasionally and I like to play games by buying and selling, but the bottom line is that I used to hold mutual funds and I consistently underperformed the market by a fair margin. Now I hold stocks and I don't.
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Obviously everyone should do what works for them, but just for the record, I currently hold three index mutual funds. It costs me nothing to buy and sell them any time I want, and the expense ratios are 0.06%, 0.04%, and 0.03%.
I wholeheartedly agree that actively-managed mutual funds are a ripoff, but index funds are practically free.