June 4, 2000
Do you catch yourself grumbling at the high expense ratios of some of these top-performing mutual funds? You know that every penny that goes toward the management fee reduces your return on investment (see related article - "Evaluating Mutual Funds Fees"). But you want to beat the S & P 500 Index so you're willing to invest in more aggressive funds. Consider the Harbor Capital Appreciation fund. This Morningstar five-star ranked fund sports a low expense ratio of 0.66% versus the 1999 average expense ratio of 1.45%. In addition to its low expenses, the fund has performed well against the S & P 500 Index beating the one-year return by 25.58%, the three-year (annualized) return by 10.63% and the five-year (annualized) return by 5.23%. The fund's return reflects its investments in high-flying growth companies such as Cisco Systems, Vodafone Airtouch PLC, Nokia and Texas Instruments.
Unfortunately, we can't always pick the mutual fund with the highest returns each year, but it's nice to know that Harbor Capital's lower expense ratio means no matter what the return is, more money will go into YOUR pocket, not the fund manager's.
Harbor Capital Appreciation Fund
Symbol
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HACAX
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Phone Number
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(800) 422-1050
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Web Site
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www.harborfunds.com
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Minimum Investment (Regular/IRA)
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$2,000/$500
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Load
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None
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Expense Ratio
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0.66%
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Redemption Fee (if you sell within 12 months)
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None
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12b-1 Fee
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None
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Year to date return (as of 6/2/00)
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4.84%
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Average annual 5 year return (as of 3/31/00 )
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34.70%
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(Source: www.harborfunds.com and www.quicken.com – accuracy of this information is not guaranteed)
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