Mutual Fund Fail – Abrecombrie Fund

I agree wholeheartedly with the sentiment of Robert Kiyosaki when he advises those who view his publications that mutual funds make no sense. With a plethora of schemes available to the public, we shall take a look at First Citizens Bank’s (FCB … no … not the football club) Abercrombie Fund:

Example One (FCB Fail)

Since its inception, this fund has proudly produced 5.14%! It took a whopping 18 years to give those who invested in the fund 5.14%. Let’s say you found out about this fund in 2000 and due to technicalities, you could not invest in the fund. If you purchased gold, even one ounce, in 2000 you would have 387.44% returns in USD!!

Example Two (FCB Fail)

The interest FCB should be paying you keeps decreasing on average .20% yearly since March 2012.

Example Three (FCB Fail)

While small being a small percentage, nevertheless, they are hoping to receive returns from  a loan it made to one of its sickly cousins the Deutsche Bank . This is a visual representation of what this bank looks like to those with financial sense. To top this off you still have the usual management fees to pay.

Example Five (FCB Fail)

So for every $1000.00 TTD, you have in that fund they take $25.90 in MER fees,  $2.50 trustee fee and $2.50 distribution fees for a grand total of $30.90 for every $1000.00 you have in that fund yearly. I am sure that your not gaining interest for every $ 1000.00 TTD but on $969.10 TTD in that fund which substantially decreases your gains.

Let’s recap:

1) Comparing to other assets such as gold within a similar time period, it performed poorly

2) Your rate of return keeps decreasing every year

3) Made a loan to one of the most toxic banks in the world in which it hopes to receive returns with interest.

4) The associated fees in the management of the fund surely decrease your rate of return per $1000.00 even further.

Are not these are excellent reasons to invest your money in this mutual fund?