If you want a dividend fund, then pick 1 out of hundreds. If you create your own fund, you are probably taking about a few stocks to a dozen or so stocks. If you buy an index fund for dividends, the index will hold hundreds of companies.
Mutual funds are usually active managed by a team of analysts, this is why a mutual fund costs more to manage than an index fund. A mutual fund usually has a high turnover (I’ve seen over 400% turnover) and you pay for this each year, buying and selling isn’t free.
Index funds are managed by a computer, very little turnover, so much cheaper. Most of my funds have an expense of .02-.04%, mutual funds are .5% to 1.3%.
You want some decent mutual funds, I haven’t been in these for years but these have made 21-27% gains during the last year and expenses are between .5%-.7%: dodfx, dodgx, flpsx. If I was going to get into a mutual fund, I would look at dodge and cox funds.
21-27% gains are pretty low during the last year plus you are paying expenses 1/2% or more for these funds. I have the equivalent of these funds but in index funds all making more than 35% with expense of .02-.04%. Plus, index funds are cheaper at tax time because the index funds don’t have the turnover
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