Strategy changes, poor stewardship, and asset bloat are among the many possible red flags that shareholders of actively managed funds should recognize to know whether to sell or stay invested.
Investors pour $6.3 billion into stock mutual funds in April--the largest inflow since May 2009.
After U.S. mutual funds registered outflows in May, $13.5 billion came back in June.
ETFs have driven the popularity of passive funds during the last decade.
The debate over whether firms should use cash surpluses on dividends or share repurchases pits long-term investors against short-term investors.
Although bonds witnessed the most inflows of any asset class last year, investors must be wary of the possible risks on the horizon.
Bond funds continue to capture the vast majority of the investment dollars in the third quarter.
Lawsuit evidence shows some portfolio counselors voiced concerns in a 2004 internal survey, but the funds' strong performance is hard to fault.
The market began 2010 on a sour note, but that didn't keep U.S. investors away from mutual funds.
A roundup of investment news from Morningstar Advisor magazine.