Mutual Funds

In my career, I have observed that investors often fixate on a mutual fund’s past performance, meticulously comparing historical returns. This is a natural instinct, but it is a misplaced priority. The most reliable predictor of your net wealth two decades from now is not the fund’s gross return, but the costs you incur along […]

In my years of guiding clients through the complexities of investment strategy, I have observed a consistent pattern: the most significant threats to long-term wealth are often silent, legal, and embedded in default settings. The Average Cost method for mutual fund accounting is a prime example. While it offers a veneer of simplicity for calculating

In the intricate world of investment taxation, few concepts are as universally available and yet as strategically limiting as the Average Cost Single Category method. As a default setting on countless brokerage platforms, it presents itself as the simple, hassle-free solution for tracking cost basis. But in my experience, this simplicity is a mirage that

In my practice, I have found that many investors focus intently on acquiring assets but give little thought to the strategy of eventually disposing of them. This is a critical oversight. The method you choose to calculate your cost basis—the original value of your investment for tax purposes—can determine whether you maximize your after-tax returns

In my years advising clients on investment strategy and tax planning, few topics generate as much confusion and unintended consequence as cost basis accounting methods. Among these, Average Cost stands as the most common, the most simple, and often, the most financially detrimental choice an investor can make on autopilot. The financial industry defaults to

In my career, few questions are as common and yet as perilously oversimplified as, “What’s the average compound interest rate for mutual funds?” The question itself contains a fundamental misconception. Mutual funds do not pay a guaranteed rate of interest; they hold portfolios of securities whose values fluctuate. The growth you experience is not “interest”

In my years of analyzing portfolio strategies, I have found that one of the most overlooked yet critical aspects of a mutual fund’s composition is its cash position. Investors often focus on equity allocations and sector bets, ignoring the silent, uninvested portion of the portfolio. This cash is not sitting idly by mistake; it is

In my years of analyzing investment landscapes across borders, I have found the Canadian market to be a fascinating case study in contrasts. It boasts a sophisticated financial system and globally recognized companies, yet its investment vehicle of choice for millions—the mutual fund—often tells a story of mediocrity. When clients ask me about “average” performance,

In my practice, I often find that the investments which hurt clients the most are not the ones that crash dramatically, but the ones that erode wealth quietly and persistently. High-cost mutual fund share classes are masters of this slow erosion. Among them, C-shares present a particularly interesting case study. They are often marketed as

In my career navigating the intricate world of investment costs, I have found that the most damaging fees are often the most obscured. While investors have grown wise to expense ratios, the layer of broker fees added on top remains a significant source of confusion and wealth erosion. These are not the fees charged by