Freelance writing, ghostwriting - finance, business, technology

Sharon Rockey is a freelance writer and ghostwriter for print and on-line media. She writes for business, finance, and technology. Visit her on-line portfolio and contact her for your next project.

Prior to the launch of a client's Hedge Fund Website, we wrote a series of e-newletters that covered fund basics, compared the fee structure to those of Mutual Funds, and because a portion of the Hedge Fund profits would go to environmental causes, we covered the trend in ethical investing. 1.Taking the Mystery Out of Hedge Funds 2.Mutual Fund Fees: the Small Print, Big Teeth 3. Got a New Attitude: All About Ethical Investing 4.Mutual Funds:Where's the Incentive to Perform? 5. Anatomy of a Hedge Fund 6. When Hedge Fund Managers Become Business Partners 7. Get the Hedge Fund Edge 8. What About the Hedge Fund Manager? Mutual Funds:Where's the Incentive to Perform? By Sharon Rockey When you wade through the fee table in a mutual fund prospectus, chances are you're not sure what all those numbers really mean. Maybe you feel some reassurance knowing that at least the information is there (for future reference), but did you notice any explanations about how the fees will effect your investment return? Anything about the fees being tied to performance? The fact is, managers of mutual funds have no vested interest in how a fund performs. Sure, they'll look good if things go well, but they'll get paid either way. The portion of fees that go to the managers of typical mutual funds are paid according to the volume of the assets they manage. When fees have no relation to the fund's performance, where's the incentive to perform? Since mutual funds are measured on relative performance -- that is, their performance is compared to a relative index, such as the S&P 500 Index or to other mutual funds in their sector -- they are not expected to deliver absolute returns or make profits under all circumstances. Mutual funds are not even expected to produce better than average returns. If your goal is to increase your net worth, is a mutual fund the wisest choice? What if you invested the same amount into a vehicle that had a dramatically different compensation structure? We have created a couple of charts so you can compare the returns and consider the possibilities. [a link to the client's Website would go here] Watch for our upcoming newsletter and find out how your investment manager can become a business partner. Next--> Anatomy of a Hedge Fund