In the following video Fool contributor, Matt Thalman discusses one reason why investors should avoid buying mutual funds and should stick to an index fund. While Matt believes there are a number of reasons why the individual investor should avoid mutual fund, today he focuses on expenses. He emphasizes the additionally expenses an investor will pay to own a mutual fund as opposed to an index fund and how those higher costs will affect an investor's long-term returns.
Buy Index Funds, Not Mutual Funds: Expenses
By Matt Thalman – Jun 7, 2013 at 10:00PM
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Learn about one of the many reasons to avoid mutual funds and stick with a simple index fund.
About the Author
Matt first became interested in the stock market while attending West Virginia University. A finance professor told a story about how a few thousand dollars invested in Mylan Pharmaceutical's stock in the 1970's had turned a number of employees, some even working as janitors at the company, into millionaires after holding onto their shares for more than 30 years. The seed of investing in quality stocks and holding those positions for a very long time was planted. After completing his MBA and working in the hospitality industry in Las Vegas for a number of years, Matt joined the Fool as a contributor in 2011. Follow his stock picks on CAPS at TMFMT.
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