Vent: My "guaranteed" 12% return fund barely broke even after fees

I signed up for this actively managed mutual fund two years ago because the sales guy at my local bank branch in Phoenix swore it averaged 12% a year. I was skeptical since nothing beats the market that consistently, but I figured a big bank wouldn't steer me wrong. After two years of statements, I finally did the math myself including all the expense ratios and front load fees. Turned out my actual return was barely 2% while the S&P 500 index fund my buddy recommended went up 18%. The fees ate everything. Has anyone else gotten burned by a flashy fund that looked good on paper but fell apart when you checked the fees?

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2 Comments

evac722mo ago

Classic bait and switch. Fees are the silent killer.

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blake4322mo ago

Honestly I feel like people overreact to fees sometimes. I mean yeah nobody likes seeing extra charges but if the service is actually good and the price is clear upfront then what's the big deal. Like I pay $5 a month for a streaming service and they add a $1 fee, that's still cheaper than cable was. Sometimes it feels like folks just want to be mad about something lol.

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