There's a great scene in the 1976 movie All The President's Men where Hal Holbrook, playing the infamous informant "Deep Throat" -- now revealed as W. Mark Felt -- tells Robert Redford's Bob Woodward to "follow the money" to break the Watergate case.
I think the same is true when investigating mutual funds, because it pays to know how your fees are being used. It may be for something you could easily do without. Consider the case of Alabama-based bank and Motley Fool Income Investor pick AmSouth
At issue is the relationship between AmSouth funds and BISYS
I'll let the SEC do the finger-pointing, yet this is but one piece of evidence that suggests AmSouth funds were and may still be a waste of your time as far as I'm concerned. Consider this: Of the 19 class "A" funds I found listed for AmSouth at Yahoo! Finance, only two are rated above industry average by researcher Morningstar
We won't charge you extra for related Foolishness. Find it all here:
- Fortunately, AmSouth is getting out of the mutual funds business.
- The company's troubles with the SEC shouldn't overshadow its outstanding second quarter.
There are thousands of mutual funds out there: Only a select few are market-trouncing funds. To find out which ones are, take a risk-free trial to Motley Fool Champion Funds today. Your portfolio will thank you.
Fool contributor Tim Beyers isn't fond of loads, especially those related to mutual funds. Tim didn't own shares in any of the funds or companies mentioned in this story at the time of publication. You can find out what's in his portfolio by checking Tim's Fool profile, which is here. The Motley Fool has an ironclad disclosure policy.