Why does the mutual fund industry preach buy and hold as the only solution?
The mutual fund industry has a vested financial interest in keeping your money invested in their funds. The annual management expense ratio fees are continuous annual fees that you pay based on the amount invested in the fund. Most mutual fund sales forces are also paid trailer fees which are only paid as long as you remain invested in the funds. The incentive is very clear – the more invested in the mutual fund, the more the salesman and mutual fund company earn in revenues.
