Friday , 29 March 2024

A Cynical Guide to Reading Mutual Fund Brochures (+2K Views)

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.
Permission to reprint in whole or in part is gladly granted, provided full credit is given.
Sign up to receive every article posted via Twitter, Facebook, RSS feed or our Weekly Newsletter.
Submit a comment. Share your views on the subject with all our readers.
Buy the book below from Amazon. It’s pertinent to this article and inexpensive too.