Saturday, March 23, 2013

Mutual Fund Voting Rights and Potential Higher Returns

Mutual fund shareholders are part owners of the fund and are therefore entitled to vote during the funds annual shareholder's meeting.

Because mutual fund is manged as a single protfolio, it is able to take advantage of certain economies of scale. For instances, with its millions or billions under managemetn, it can negotiate for lower stockbrokerage fees or command higher interest rates on fixed-income investments.

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