The Zero Alpha Group continues to hammer away at broker-sold mutual funds with its fifth annual report analyzing the returns of funds purchased through brokers versus those purchased directly.

“Even though they are paying for brokers to assist them, investors in load-carrying mutual funds end up making significantly worse timing decisions than investors in no-load funds, underperforming their own funds’ reported returns by three times as much as no-load fund investors,” according to Zero Alpha. This is due to the timing of their purchases and the benefits of a buy-and-hold strategy.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.