What you should know when considering mutual funds. What are the limitations
3 Limitations of Mutual Funds – Video Transcript
Fees:
- Mutual funds have a flat nonperformance linked fee structure
- You pay for regardless of fund performance
Investment Decisions:
- Investment is managed by the fund manager.
- Individual investor cannot influence what investments the MF makes
Costs:
- Costs incurred for managing the scheme are shared by all investors.
- Therefore an individual investor has no control over the costs.