SAN RAFAEL, Calif.--(BUSINESS WIRE)--The new book “Mutual Funds Exposed: What You Don’t Know May Be Hazardous to Your Wealth,” by Dr. Kenneth A. Kim, Chief Financial Strategist and Dr. William R. Nelson, Chief Investment Officer and Co-Founder of Eqis Capital Management, sheds light on negatives of investing in mutual funds and proposes a modern alternative.
Their book lays out many costs and flaws of mutual funds in an easy-to-understand way.
“If investors are invested in mutual funds primarily, they are behind the times,” says Dr. Kim.
Many of the problems with mutual funds stem from the fact that mutual funds own the stocks and bonds, and that the investor can only purchase shares of the fund, he notes.
Dr. Kim believes that mutual funds are typically costly poor performers, tax inefficient, non-transparent, and even sneaky. He further believes that financial professionals who recommend mutual funds to clients risk losing their clients’ trust, which could eventually destroy their businesses.
Here are just a few drawbacks to investing in mutual funds:
● Investors in conventional mutual funds can get hit with a tax bill even if they lost money since holding the fund.
● Mutual funds can suffer from "hidden" costs, which can even be larger than the funds' disclosed costs.
● Mutual funds can over-diversify, which may drive down the fund’s ability to achieve outperformance and may increase undisclosed hidden costs.
● Mutual funds can be non-transparent and even sneaky.
Investors and financial advisors can obtain a free copy of the book (in PDF version or flipbook version) for a limited time at http://www.mutualfundsexposed.com
About the authors:
Dr. Kenneth A. Kim has been a finance professor for 20 years. His academic career was spent exposing inefficiencies in financial markets and in financial industry. His dedication to protect and to help individual investors motivated appointments as a senior financial economist at the SEC in Washington, DC, and as a consultant for the CFA Institute. Dr. Kim has been quoted or his research has been cited in New York Times, Wall Street Journal, Washington Post, and so on. Dr. Kim is now EQIS’s Chief Financial Strategist. For complete information on Dr. Kim, visit http://www.kennethkimphd.com
Dr. William R. Nelson has been EQIS’s Chief Investment Officer for the past 10 years. As a former member of the CBOT and as a former economics professor, Dr. Nelson uses a unique blend of industry experience and academic rigor when managing portfolios. As an academic, Dr. Nelson’s research, published in top journals including the American Economic Review, focused on how fairness and fair play affect choices and outcomes, which inspired his coauthorship of this book.
EQIS delivers access to institutional style money managers and directly owned securities in SMAs with an account minimum of only $25,000. For more information visit http://www.public.eqis.com
The information contained herein is believed to be reliable but is neither guaranteed by EQIS Capital Management, Inc. nor any affiliated EQIS companies. Content includes EQIS's opinions and is not guaranteed. This is not a solicitation to buy or sell securities. CID 140403
NOTE TO EDITORS: Book cover, author photo attached for publication; Review copies available upon request.