 Hello, and welcome to another video lesson from Navigation Trading. In this video, I want to talk about five reasons your mutual funds suck. At the end of this video, I'm going to show you how you can easily beat any mutual fund out there in less than 15 minutes per day. Let's get started. Number five, mutual funds are expensive. You have expense ratios, commissions. If you use a financial advisor, you have advisory fees on top of that, and these costs take directly away from your profits with your money. Number four, investment banks, mutual fund companies are nothing but asset-gatherers. The mutual fund industry is a huge marketing machine. There are major conflicts of interest. They want you to think that they are smarter than you, that you can't possibly outperform a professional. So they hire these PhDs from Harvard, economists from Yale, just to sit on their staff so they can advertise credentialed people that will supposedly make your funds perform better, but it couldn't be further from the truth. Number three, most funds are long only, meaning they're buying a stock and hoping it goes up. But stocks go up and down. So why limit yourself to one direction? And oh, by the way, who's taking the other side of all those trades? Market makers, hedge funds, floor traders, and yes us at navigation trading. Number two, taxes. When you own a mutual fund, it's made up of hundreds or thousands of partial shares of different companies. So that money manager is constantly buying and selling those stocks within your fund. So if they sell a stock and buy and sell a stock in less than 12 months, that's a short-term capital gain. So it's taxed at ordinary income. If they hold it for longer than 12 months and then sell it, that's taxed at a long-term capital gain rate. And some of those funds or stocks are held, so they're unrealized gains. And so what happens is they're buying and selling these investments within the fund and guess who gets the tax liability? That's right. You do. And number one is performance. Over 85% of active funds underperform their index benchmark each year. And you might be thinking, yeah, but if you just find the top 15%, then you're overperforming, right? That's not correct because these funds change from year to year. One year it could be a five-star fund, and the very next year it'll be a two-star fund. There's no consistency over the long-term. And did you know that the only goal of an actively managed fund is to barely beat an index? And if they do, they're considered a five-star fund and billions of dollars pour into those funds. And before you think, yeah, but I only invest in index funds, guess what? Index funds suck, too. All the index fund does is simply track the index. And that's just mediocrity. And did we decide that mediocrity is acceptable? Come take a look at navigationtrading.com. We've got a lot of free resources, a lot of free content. If you want to trade on your own, we've got a watch list so that you know the most profitable symbols to trade with each type of strategy. We've got the volatility indicator, which can help you make decisions on entering or exiting a trade. We've got a free course called Trading Options for Income, where you can learn to trade on your own and beat any mutual fund out there in less than 15 minutes a day. We look forward to seeing you there.