Are you indexing and didn't know it? You might own an actively-managed large cap fund that owns 200 stocks and charges a 1% management fee. You might own 2 such funds each with 200 stocks. You may even own 3 or 4, each with 200 stocks. At that point you are pretty close to matching the Vanguard 500 Index Fund that charges a 0.05% fee. Except YOU are still paying a 1% fee which makes it a pretty good bet you are doing worse than if you just bought the Index 500 fund.
Larry Pike, CFA
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