Wednesday , 23 August 2017


A Cynical Guide to Reading Mutual Fund Brochures

In edited excerpts from his original article* Joshua M. Brown (www.TheReformedBroker.com) maintains that when a fund brochure says:

1. Ultra

It really means: Leveraged to the hilt.

2. Global growth

It really means: We’ll chase stocks for you in whichever country is most overheated right now.

3. Clean/green

It really means: A basket of government-subsidized experiments and some GE shares.

4. Deep value

It really means: We will invest in sewing machine and typewriter companies.

5. Socially responsible

It really means: No such thing – all corporations are evil.

6. Diversified

It really means: We will basically buy the index and go golfing.

7. Enhanced

It really means: Uses exotic derivatives you’ve never heard of.

8. Aggressive growth

It really means: Collection of Chinese gaming stocks and New Jersey biotech startups.

9. Moderate allocation

It really means: Gutless fund manager.

10. Opportunities

It really means: We will throw darts.

11. Core

It really means: No need to spread it out: send us everything you have.

*http://www.thereformedbroker.com/2009/12/14/decoding-fund-brochures/

Editor’s Note:
– The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
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