The KISS Principle

The KISS Principle

Today it is more complicated than ever for the average investor to really understand how to pick a mutual fund. Most novices may choose a fund if it has a 4-star or 5-star ranking. Or they decide to pick a fund because they did a Google search for best returns and then select one from the top of list. The truth is, most investors today would be lucky if they could name one or two actual positions that their mutual fund owns if they were asked. In my opinion fund companies could become more friendly if they used the Keep It Simple Stupid principle. (more…)