Title: Weigh the risks and the rewards
Product review: On page 16, the author urges the reader to "Face Facts", noting that, "A mutual fund portfolio that loses 25 percent in a single year needs to return 33 percent to get back to where it was at the beginning of the decline." Umm, that's not unique to mutual funds. If I own four cars and one is stolen, a decline of 25%, I will have three cars left. Replacing the fourth car represents a 33% gain (one divided by the three remaining cars). Mutual funds certainly have drawbacks, but like any investment, the investor needs to weigh the risks against the rewards.
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