: The problem for many investors is that the labels don’t always fit what the buyer thinks is in the fund, according to Market Watch. While that problem is sometimes caused by managers making portfolio moves or funds gaming the ratings system and trying to pass themselves off as something where they look better by being miscategorized, these days it is more often caused by a labeling lexicon that some might consider outdated, that the world has passed by. They look for the right brand of fund company and the right label for what it owns. It starts with simple labels like domestic, international, global and world funds, but it extends to growth and value funds, so-called smart-beta issues and more. We will save the growth-value and smart-beta debates for next week, and focus this week on the issues of where a fund buys its holdings from. If investors don’t understand the labels of their funds, then the maneuvers they make during tricky market times might be mistakes.
(news.financializer.com). As
reported in the news.
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