I Want My Money: Capture the Advertised Returns of Mutual Funds

Here’s what goes through the minds of most investors when they read about the stellar returns advertised by mutual funds: “I owned that fund, and I didn’t get anywhere near those returns.”

One article estimated investors end up with less than 20 percent of the annual returns of the mutual funds they once held. Personal finance expert Dan Solin says the reason isn't hard to figure out: Most investors are advised by brokers. Brokers typically encourage them to chase returns by investing in “hot” funds with stellar recent performance records. The funds get a massive influx of cash and are unable to repeat their prior performance.

So how can anyone avoid this "investor trap"? Dan Solin gives his three tips for actually capturing a fund's advertised returns on his blog: http://ow.ly/3huZU. If you've been frustrated by the returns from your mutual funds, it's worth a read. 



Ilyce Glink is the author of several books, including "100 Questions Every First-Time Home Buyer Should Ask" and "Buy, Close, Move In!". She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blog and CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.