Introduction

Lots of individual investors are stuck in high-fee mutual funds that are either directly indexed to a common benchmark, or they offer very similar exposures to a low-cost or even free ETF. Worse still, many of these mutual funds have been around a long time, so they have lots of embedded gains. Therefore, in years with lots of volatility, mutual fund managers have higher than usual turnover, generating a capital gain on top of poor performance.

Goal

We plan to develop a system to seek out these funds and provide alternatives to customers of mutual funds, especially before the end of the year when you can get out of the mutual fund before the distribution hits.

Team Members

• Arvind Maran (Co-lead)
• Lucas Bunting (Co-lead)