The Truth About Mutual Fund Managers

Are they really working for you? Check out  now

Himanshu Panwar

03/01/2025

Conflicted Interests

Some managers care more about their bonuses than they do about your returns. Performance fees reward riskier bets—who really benefits?

Photo - pexels/fauxels

Hidden Fees

Expense ratios, transaction fees, and loads—all these costs cut into your returns. But do you know what you're really forking over?

Photo - pexels/shkrabaanthony

Active  vs  passive

Studies show that most active managers underperform passive indexes. Why pay more for something that could be ineffective?

Photo - pexels/anna

Transparency Issues

Some mutual funds will never be transparent. How can you trust a strategy when you never know what's inside?

Photo - pexels/dziana

Performance Making

Too often, managers chase last year's winners. This can result in rotten returns as markets change. Is this the best approach?

Photo - pexels/voitkevich

The Long Game

Frequent trading will raise the fees, but not the returns. Are these fund managers really long-term growth-focused?

Photo - pexels/voitkevich

Conflicts with Fund Sponsors

Some managers may sacrifice their returns in favor of fund sponsor interests. Is corporate pressure compromising your returns?

Photo - pexels/martinpechy

Survivor bias

So what about those who fail? Why aren't those shown, but only the successful ones? Is the industry giving you a full picture?

Photo - pexels/dayanrodio