This is a quick four-minute video that I put together to explain the very basics of a mutual fund and how it works. Feel free to share it with anyone you think might like it.
Note: you can click on the bottom right of the video to blow it up to a full-screen view. Enjoy! Feedback welcome in the comments section below.
What Is A Mutual Fund? from Preet Banerjee on Vimeo.
A mutual fund is a group of investors who give their money to someone else to invest. On average that person who gets the money is an under-performer and under-achiever. Yet, he/she is paid a significant portion (1+% annually) to mismanage the investment dollars.
The following well-known phrases apply:
A fool and his money are soon parted
Laughing all the way to the bank (the manager, not the investor)
Where are the customers yachts?
Mark
Very useful, will you be doing one for Index Funds next?
@Mark – hey, I never said anything about whether they were good or not! :)
@Big Cajun Man – most definitely!
If you do one on Index Funds, but a Ferrari in it, please.
Why does CIBC claim to charge less fees than investment adviser from London Life?
WD – can you provide more details?