Re: Evaluating Managed Funds
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charge an additional 2% when you take the money out of the fund
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Dude. Chill out. Read the prospectus: "The [2%] redemption fee applies to the proceeds of Fund shares that are redeemed within 60 days of purchase."
The expense ratio is 100bps, compared to 20bps for an index fund. Bruce et al. give the index an 80bps headstart.
If you think their philosophy, temperament, and track record (longer than 5 years by the way...their co. also manages a lot of money besides FAIRX) are the real deal, 80bps is a small hurdle.
If you think that investing is like coin flipping and no one can beat the market long-term, go with the index fund.
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