Keeping It Simple

April 19, 2023

The original idea behind the mutual fund was a basic one—allow investors to build and access a diversified portfolio without high trading costs. Now, almost 100 years later, there are over 10,000 mutual funds and ETFs available in the U.S. that span almost all asset classes and an array of options to find almost any niche investment exposure desired. Enough to make your head spin? Mine too.

The below article details the mutual fund industry, and the conclusion that oftentimes keeping it simple yields better results. I find this parallels with a personal wealth planning perspective as well. Whether you’ve been with American Trust Wealth for one month or 20+ years, you’ve likely heard your advisor speak on the importance of holding high quality assets and sticking to a personalized strategy to meet your financial goals. Avoiding complexity doesn’t mean ignoring all available options and strategies; it simply means taking a sound and prudent process-oriented approach to develop your investment strategy, and then sticking to it.

Check out Amy Arnott’s article linked below for a more in-depth look at the growth of the fund industry and some of the pitfalls of seeking the latest and greatest—new and complex does not always equate to better. As always, reach out to your advisor for questions about your personal investment strategy.

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