Goldman Sachs absurd mutual funds for individual investors

Still relying on a gold plate name, Goldman Sachs today announced a change in its head of asset management. That may be good news for institutional investors, but for those individuals who fall for brand names it is unlikely that anything will change. Goldman charges an absurd expense ratio averaging 1.4% for funds that almost routinely underperform the S&P 500 indexes, with fees included they always underperform. Depending on the broker that sells these funds the up front charge can be as much as 5%. The veneer of reliability and honesty is now off this company almost universally in world corporate markets, it's just another firm to be judged on what it can offer at what price. For individual investors, it should be a pariah.

In its institutional relationship business Goldman remains as a major player, with many smart and savvy professionals. It's just not what it once was, and individuals should stay away.