Given the investigations into their alleged kickback schemes, would it
be wise to dump these guys? Are they going to become another Janus? My
company's 401K program quietly switched over to Mass Mutual and their
stable of offerings, but the American Balanced Fund is still available.
Just dump all load funds. There are many similar or better offerings
available in no load arena. Never buy a fund from a "load family".
"hp" <> wrote
> Just dump all load funds. There are many similar or better offerings
> available in no load arena. Never buy a fund from a "load family".
In a 401k that can be easier said than done. The load may or may not be
waived depending on the plan.
Steve Pankow wrote:
> Given the investigations into their alleged kickback
> schemes, would it be wise to dump these guys? Are they
> going to become another Janus? My company's 401K
> program quietly switched over to Mass Mutual and their
> stable of offerings, but the American Balanced Fund is
> still available.
I doubt American will be paying kickbacks any more, and their funds are
probably cheaper than Mass. Mutual's.
hp wrote:
> Just dump all load funds. There are many similar or better offerings
> available in no load arena.
If you've already paid the load, it's no longer a reason to dump the
shares you own.
--Darin
are paid by most every fund that sold, load or no-load, outside the
fund family's own point of sale. So called "no load supermarkets" use
the same revenue sharing or "kick back" process to fund them. You
don't think those supermarkets are run out the kindness of Fidelity
or E-Trades heart, do you? :lol:
The "kick backs" were paid by, in this case, American Funds out of
their management fees that otherwise would have gone to the fund
family. There was no additional costs to the buyers of the fund than
they would have paid if they'd bought it directly from the fund
family.
Janus most recently blew up because of fine they paid because they
allowed some high dollar holders to trade after the close BUT that
collapse was already well under way because their high-octane, highly
concentrated, go-go growth investing style fell out of favor with the
market bubble. They had massive gains in some years, it stands to
reason they'd have some massive drops in others.
OTOH, boring old value managers (think Warren Buffett) never had the
incredible up years, but they avoided the massive down years as well.