|You are on the end of a complex
and sophisticated selling operation. So 'choosing' is about
getting at the truth.
The purpose of this section is not so much to enable
you to chose between different products. It is to help you with
the consequences of choosing products at all.
The things that matter, as always, are risk, return,
liquidity, diversification. The trick is getting to the truth about
these things. The issues covered in this section are those that
apply to products only, not to direct investments.
The biggest enemy of returns is costs. Do
Costs Matter? explains why. Costs
Unwrapped explains what to look for. Portfolio
Turnover describes a source of excess cost often ignored. Performance
Fees unwraps the illusion of another cost drag.
on Performance? explains why past performance is no guide to
the future. Star
Managers examines another popular but misconceived way of choosing
Media and Guaranteed?
explain ways in which what you are told may conceal what you
should be told.
Smoothing Illusion, Percentage
Games and Data
Biases explains some of the tools in a skilled financial illusionist's