Citing practices within the mutual fund industry that contribute to
investment losses, a guide for investors offers advice on how to overcome fees,
taxes, and other portfolio-compromising factors by avoiding expensive
investment management companies and working with not-for-profit groups. By the
author of Pioneering Portfolio Management. 20,000 firIn UNCONVENTIONAL SUCCESS, investment legend David Swensen reveals why the
for-profit mutual fund industry consistently fails the average investor, from
its excessive management and incentive fees to the frequent 'churning' of
portfolios that forces investors to pay higher taxes. Perhaps most destructive
of all are flagrant schemes designed to thwart regulators and further erode
portfolios, limiting investor choice and reducing returns. Swensen's solution?
A 'contrarian' investment alternative that creates more diversified,
equity-oriented, 'market-mimicking' portfolios that minimize loss and reward
the investor with the courage to stay the course. Swensen backs up his
unconventional proposal with well-documented evidence supporting not-for-profit
investment management companies such as Vanguard and advice on steering clear
of poorly constructed funds. Bottom line? Swensen provides the guidance and
financial know-how for improving the personal investor's bottom line.
