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Retail industry

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Simplicity and low costs are key to success

Article Abstract:

It is important to be aware that investors in mutual funds or unit trusts ultimately pay for the marketing undertaken by that fund or trust. It is quite common for funds to be over-hyped, with the danger of investors being misled about the potential returns. Furthermore, focusing on marketing affects the nature of the relationship between the fund and the investor, with the investor being seen as simply a customer of the adviser, according to Vanguard Group founder Jack Bogle. It is important to invest only in low cost funds wherever possible and to be cautious about the hidden costs of investment advice.

Author: Davis, Jonathan
Publisher: Financial Times Ltd.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1999
United Kingdom, Financial management, Investment Companies, Open-End Investment Funds, Marketing

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Investments

Article Abstract:

The issue of investment trust discounts tends to cause considerable confusion among investors, who are unable to understand why some trusts trade at a large discount to their net asset value while others trade at a premium. In recent times, discounts have tended to be favourable to investors, with the average discount now being around 9-10%. However, there is still a considerable degree of variation.

Author: Davis, Jonathan
Publisher: Financial Times Ltd.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1996

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Subjects list: Management, Column, Mutual funds
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