One of the most boring classes I took in high school ended up being the most valuable for my adult life – What’s the most important class you took in college? It should have been financial literacy. For most of you, I bet it wasn’t. We learned about the difference between stocks and mutual funds, what it means to have a high insurance deductible, and how to avoid identity theft.
Fees on Mutual Funds Fall – For those of you who invest in mutual funds, you’ll be happy to know that fees that mutual funds charge are declining. A new Morningstar study offers an excellent explanation of what is happening. The report, “2015 Fee Study: Investors Are Driving Expense Ratios Down,” found that, by one measure, mutual fund and E.T.F. fees paid by individual investors had dropped significantly — 27 percent — over the last 10 years. But it isn’t mainly because Wall Street fund managers have been reducing fees. The study found that investors have been voting with their feet, moving money from expensive funds into cheaper ones, like index funds. That drives down the asset-weighted cost of mutual funds, skewing the statistics.
The Best Fidelity Mutual Funds – Also regarding mutual fund investing, The Motley Fool discusses the mutual funds from Fidelity Investments that they think are worthwhile places for your money. Fidelity Investments offers a huge array of mutual funds, most of which are low-cost options with at least decent performance. But which are the best? That depends on your perspective, but some funds certainly stand out.
How Millennials’ Money Habits Could Shake Up The Financial Services Industry – Millenials spend and save money differently than their predecessors. “They have their own tools and their own rules, and the traditional legacy schema that we’ve set up for doing things in certain institutional sectors doesn’t really matter to them,” says Donna Sabino, senior vice president at Ipsos MediaCT, a media and brand research firm that conducted the study in partnership with LinkedIn (Here’s how the Millennial generation could affect the economy in the next five years.)