Mutual Funds Suck! More Evidence


According to the Globe and Mail,

“Not a single Canadian manager investing in U.S. stocks delivered higher returns than the S&P 500 index over that time (past five years), according to S&P Dow Jones Indices.”

Well that’s America, what about Canada?

“The second quarter saw 17 per cent of Canadian large-cap equity fund managers beat the market, which was the lowest rate of outperformance among data going back to 1999”

Do you need any more proof that buying mutual funds is a bad investment?  It’s all about cost.  Mutual funds with fees of 2-3% can’t compete with low cost index funds.

If you want to be a successful investor, you need to ditch the mutual funds, and learn to DIY.  Buying low cost index funds with an advisor is better than mutual funds but it’s still too expensive.  Paying .5% to 1% for index fund advice is still too high.

Happy investing.



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