Forty years ago, John Bogle, founder of the Vanguard, has created the world's first index mutual investment - for AMarkets materials.
Clients of the first mutual investment fund was promised the following: you never will bypass the market for their income, but also below the market you also do not prosyadet. Index Investment Trust Index (now the Vanguard 500 Index Fund) simply follows the index S & P 500. Mutual Investment Funds have grown like mushrooms after rain. This multi-billion dollar business. Plus for investors in times of crisis - a minimum fee as opposed to funds, involving active investing.
How to choose the best mutual investment fund for co-operation? Not quite correct tactics would be to try to choose a fund with the highest income levels . 5-year or 10-year average value of profits may look good only due to the fact that the fund has played particularly well in certain periods of time. For example, when the market was in a confident bullish trend. It makes sense to look at the years of working separately, and not just on average. Of great importance is the size of the commission. The minimum commission - is perfect. Well, if the fund is no commission for withdrawal from the fund (sales fees). In 2015, according to Morningstar.com, the average size of the annual fee for an actively managed fund was about 0.84% against 0.11% for the index fund / mutual fund investment. For Bonded actively managed fund and a bond index fund such figures - 0.60% and 0.1%, respectively. Another important indicator - the number of speed - how many shopping deals / sales commits the fund manager. Ideally - less than RPM, the better. High-frequency trading for mutual investment fundis not very good - in this case, trading costs are rising. And these costs are passed on to fund investors.