About Michael A. Weiss, CFA Expertise I can provide high quality answers to questions about mutual funds domiciled in the United States. Overall, I have 15 years of investment experience. I am currently the Editor of <a href="http://www.mutualfundinvestor.net/">The Mutual Fund Investor</a>, a quarterly publication that provides recommendations and commentary on various no-load mutual funds. I am also currently the Chief Investment Officer of a state registered investment advisory firm that specializes in no-load mutual funds.
Experience Overall, I have 15 years of investment experience. I am currently the Editor of The Mutual Fund Investor, a quarterly publication that provides recommendations and commentary on various no-load mutual funds. To learn more about The Mutual Fund Investor, please visit <a href="http://www.mutualfundinvestor.net/">http://www.mutualfundinvestor.net/</a>. I am also currently the Chief Investment Officer of a state registered investment advisory firm that specializes in no-load mutual funds.My mutual fund experience began at a company called Lipper Analytical Services, where I researched and wrote about mutual funds. Lipper is one of the premier mutual fund research and ratings organizations. After Lipper, I worked as an investment analyst for Merrill Lynch’s multi-billion dollar Mutual Fund Advisor and Selects Programs. I also have experience working with individual stocks and bonds. I have managed investment portfolios for both Merrill Lynch Investment Managers as well as Evergreen Investments.<BR><BR><B>Organizations</B><BR>CFA Institute
CFA Society of Philadelphia
<BR><BR><B>Publications</B><BR>The Mutual Fund Investor
<BR><BR><B>Education/Credentials</B><BR>CFA charterholder
MBA in Finance and Investments from the Zicklin School of Business at Baruch College<BR>
Expert: Michael A. Weiss, CFA Date: 5/8/2007 Subject: type of shares/classes
Question Based on some professional advice, my wife (32 years old) will be investing a portion of her pension plan in the following fund: Investment Co. of America (Amer. Funds). Our IRA contributions for 2006 were used to purchase this fund (AICCX). Should the pension $ also be used to purchase "c" shares? Or, does a work pension usually have a different strategy? I am still quite unsure about which share types are best for which situations. Thank your for your time.
Gregory
Answer Hi Gregory,
You are not the only one who is confused about share classes. The number of share classes has increased dramatically over the years.
First, it is important to know that Investment Company of America invests primarily in mega-cap stocks. (the largest of the largest companies) In the mega-cap market, information travels very quickly and freely. As a result, it becomes very difficult for portfolio managers to add value through active management. The C shares carry an expense ratio that is almost 1.4%, which in my opinion, is too high for this strategy. The C shares also have a deferred sales charge, which may be waived in a pension plan. I do not know what your other options are in the pension plan, so I cannot provide advice regarding an alternative fund.
In general, I agree with the mega-cap strategy in the current market environment, but there are plenty of no-load large-cap funds with far lower expense ratios. If you have a chance, you should get a Sample copy of my mutual fund report. Just go to www.mutualfundinvestor.net and click on Try it Free.
Good luck!
Michael A. Weiss, CFA
The Editor
The Mutual Fund Investor
www.mutualfundinvestor.net
