Cost is king: the benefits of target-weighted funds

COST IS KING

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Tom Rampulla, managing director of Vanguard Asset Management, explains the benefits of target-weighted funds when assessing suitability and cost.

As a fee-based adviser operating in an uncertain and volatile world, you are faced with a number of challenges. How are you going to ensure that you are providing a service your clients are happy to pay for? You are unlikely to demonstrate value by trying to pick top-performing markets or by encouraging your clients into the latest hot fund. However, if you can help your clients avoid some of the natural human shortcomings that beset all investors; if you can focus on the parts of the investment equation you can control – such as cost – then you will be providing a service of obvio...

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