How to Tell if a Fund is All it Claims to Be

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

The following is an excerpt from Hello Harold, a book by Harold Evensky - click here for a free Kindle version!

One of the hats I wear is as a professor of practice in the personal financial planning department at Texas Tech University, where I teach the graduate wealth management class. Join me in class as I about lecture mutual funds.

There are thousands of mutual funds that offer to select stocks and bonds for your portfolio. But which ones are right for you?

Wealth Management Class: Good morning, Professor Evensky,”

HE: Good morning, class. Are you ready to talk about the exciting topic of mutual fund selection?

[Enthusiastic cheers from the students sitting in the front row. The students sitting in the back look up from their smart phones.]

Can anybody tell me what the assignment was?

Michael: The assignment was to evaluate a particular mutual fund that’s being promoted as the only stock fund you need for your portfolio.