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Russel Kinnel Director of Morningstar Mutual Fund Research was interviewed this morning on CNBC about his new book Fund Spy: Morninstar’s Inside Secrets to Selecting Mutual Funds that Outperform. Russel likes and owns both actively and passively managed funds. The book recommends that investors look at the following criteria for selecting mutual funds:
The fund has low fund expenses.
Management is personally invested in the fund.
The fund has a low risk profile.
Management is a good steward and takes good care of her investors.
The current manager’s performance has beaten the fund’s benchmark during her tenure.
Mr. Kinnel made some excellent points in the interview. If you invest in actively managed mutual funds this book will likely be of interest to you. Morningstar offers an excellent mutual fund research product and is considered the leader in this field.