Christine Benz Fund Quotations

Fund companies are increasingly looking at this as a retention tool. Perhaps its one way to keep your fund manager on board. I don't know if it's a full blown turning point, but companies realize it could be a brain drain so they're taking steps to stay competitive.

If Spitzer's allegations prove true, it's a clear indication that all four fund firms were willing to put their companies' own profitability ahead of the interests of their fund shareholders.

I would say it's a dueling trend that retail mutual fund companies are starting hedge fund like vehicles to retain that talent. That is a weapon in a fund company's arsenal.

You don't want a fund that had its best years with $5 million in assets.

For investors who aren't sure about how to select a fund appropriate for their time horizon, these funds really make it simple for you to do that and to get a lot of diversification in a single package. They help investors with the two things they have the most problems with. The first is arriving at an appropriate asset allocation, and the second is maturing that asset allocation as you approach your goal.

It's a point I'd make regarding any mutual fund, but it's particularly important in a mutual fund type where you expect a low absolute return. If you're paying 1 percent in expenses and you're earning just 3 percent, you're forking over literally a third of your return.

In general, in any sort of tax-deferred account, you have a little more leeway to look at fund types that might be undesirable for your taxable account. If you're going to own a high-turnover, aggressive growth fund, for example, putting it in a tax-sheltered wrapper is a good idea. By the same token, a high-yield bond fund might be a good thing to put in a tax-deferred account.