Fund holdings overlap. You buy an assortment of funds to provide you with diversification. But a closer look will likely show that many of your funds own the same core group of stocks. Funds create tax paperwork. To minimize taxes, you have to keep highly organized records.
Funds grow too large.
You buy a fund because it has a great track record. Then thousands of other investors buy the same fund, flooding it with more cash than the manager can invest. The result in many cases is poor performance. But, more important, we give you expert Time-Tested advice to help you invest in personal stock portfolios tailored to your goals, risk tolerance and needs. As a result, you will earn more in a Netfolio account than in a fund.