There are at least 933 different Large Cap Value mutual funds and at least 6387 mutual funds across all styles. Do investors need that many choices? How different can the mutual funds be?
This report identifies the “best” ETFs and mutual funds based on the quality of their holdings and their costs. As detailed in “Low-Cost Funds Dupe Investors”, there are few funds that have both good holdings and low costs. While there are lots of cheap funds, there are very few with high-quality holdings.
Finding the best mutual funds is an increasingly difficult task in a world with so many mutual funds. Investors cannot trust mutual fund labels or names. They do not tell you enough about what you are getting when you buy a mutual fund.