I just thought I would update everyone on a little contest that I received in a piece of marketing material. A certain mutual fund advertising company has created a final four mutual fund contest. Just like the NCAA tournament, the field will be seeded with 64 competitors (funds), and after several weeks only one fund, the top performer, will remain. (Unfortunately, we cannot pick the original 64). Surely, the "prize" at the end of this for the winning fund is the fame of being the "March Madness" mutual fund winner.
Although certainly not a perfect experiment set up, I am going to fill out the bracket with the following way and see how things turn out in the end. I will in all circumstances pick the less expensive over the more expensive fund. The logic behind this is that if a fund manager is very "active" they will incur higher costs, which they will not be able to overcome. I have no idea what the results will be, but it should be fun in any event. Check back in a few weeks to see the results.
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