FA Magazine: “Are Investors Likely To Outlive Their Mutual Funds?”
(Based on the article “Will Your Clients Outlive Their Funds?” by Dan Kern Jan 2, 2014)
According to a study performed by Advisor Partners, an investment advisor based out of Walnut Creek California, there is a good chance that an investor will outlive their mutual funds. This research is based off mutual fund performance in connection with the yet to be released book The Safe Investor by Tim McCarthy (Palgrave Macmillan, Feb 2014). According to the research, mutual funds fail based on four reasons. Also, when a fund merges or liquidates, there is a transition cost that can be detrimental to a long term investor. Find out the four factors that affect why mutual funds fail and why it is better to leave a fund that is closing: http://www.fa-mag.com/news/will-your-clients-outlive-their-funds-16465.html