The small investor's step-by-step plan for low-risk, high-return investing, revised and updated to reflect recent changes in tax laws.

The small investor's step-by-step plan for low-risk, high-return investing, revised and updated to reflect recent changes in tax laws.

The small investor's step-by-step plan for low-risk, high-return investing, revised and updated to reflect recent changes in tax laws.

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The author of Pioneering Portfolio Management shows individuals how to avoid the for-profit mutual fund industry and get better returns on their money. In Unconventional Success, investment legend and bestselling author David F. Swensen offers incontrovertible evidence that the for-profit mutual fund industry consistently fails the average investor. From excessive management fees to the frequent “churning” of portfolios, the relentless pursuit of profits by mutual fund management companies harms individual clients. Perhaps most destructive of all are the hidden schemes that limit investor choice and reduce returns, including pay-to-play product-placement fees, stale-price trading scams, soft-dollar kickbacks, and 12b-1 distribution charges. Even if investors manage to emerge unscathed from an encounter with the profit-seeking mutual fund industry, individuals face the likelihood of self-inflicted pain. The common practice of selling losers and buying winners (and doing both too often) damages portfolio returns and increases tax liabilities, delivering a one-two punch to investor aspirations. In short: Nearly insurmountable hurdles confront ordinary investors. Swensen’s solution: A contrarian investment alternative that promotes well-diversified, equity-oriented, market-mimicking portfolios that reward investors who exhibit the courage to stay the course. Swensen suggests implementing his nonconformist proposal with investor-friendly, not-for-profit investment companies such as Vanguard and TIAA-CREF. By avoiding actively managed funds and employing client-oriented mutual fund managers, investors create the preconditions for investment success. Bottom line? Unconventional Success provides the guidance and financial know-how for improving the personal investor’s financial future. “Reveals why the mutual fund industry as a whole does a disservice to the individual investor.” —Booklist “What he has to say is worth listening to.” —The New York Times

Written specifically with the beginning investor in mind, this book is the most accessible and complete guide ever published on low-risk, high-value investments. This updated edition includes all-new information: Taking advantage of the latest in internet information and on-line trading Maximizing your 401(k) investments Ways to save and pay for college (before or after graduation) Turning up high yields in safe places This seventh edition of How to Invest $50--$5,000 shares Nancy Dunnan's years of financial expertise. Written in an easy-to-follow format so that even the most inexperienced investor can understand today's markets.