Decoding Fund Brochures

Decoding Fund Brochures

I’ve been reading these things for 14 years, I think I finally got the hang of it. Feel free to use this as a reference guide during your next mutual, exchange traded or closed end fund selection.

Here’s the all-text version:

Fund Brochure Says…What It Really Means…
UltraLeveraged to the Hilt
Global GrowthWe’ll Chase Stocks For You in Whichever Country is Most Overheated Right Now
Clean/ GreenA Basket of Government-Subsidized Experiments and Some Shares of GE
Deep ValueWe Will Invest in Sewing Machine and Typewriter Companies
PremiumWe Will Pay Up for High-Multiple Stocks/ You Will Pay Up in Fees
Socially ResponsibleNo Such Thing – All Corporations are Evil, Sucker
DiversifiedWe Will Basically Buy the Index and Go Golfing
EnhancedUses Exotic Derivatives You’ve Never Heard Of
BalancedWe Will Underperform Both the Bond AND the Stock Market.  You’re Welcome.
Aggressive GrowthCollection of Chinese Online Gaming Stocks and New Jersey Biotech Startups
LifecycleWe Can See 20 Years Into the Future, Only Putnam Knows When and How You Will Die
Moderate AllocationGutless Fund Manager
QuantitativeManager Will Take Credit for Up Years, Blame Computers for Down Years
Endeavor/ OpportunitiesWe Will Throw Darts
CoreNo Need to Spread it Out, Send Us Everything You Have

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