Customer Reviews

Fund Spy: Morningstar's Inside Secrets to Selecting Mutual Funds that Outperform

5 star:		(6)
4 star:		(2)
3 star:		(0)
2 star:		(0)
1 star:		(1)

 

 

This book helps you narrow down your list of possible mutual funds to purchase using historical data for thousands of funds over the last several years along with the experience of Morningstar's team of investors. One of the most helpful hints in the book is the free link at morningstar.com/goto/fundspy which can be used to screen potential mutual funds using the key factors described in the book. Some of these factors are subjective on the author's part, so be aware that the FundSpy tool is not based on objective data only. Personally, I think using Morningstar's Basic Fund Screener first to narrow down your list of funds to a select few followed by use of the FundSpy tool is a great way to get started, then you can dive down into the details before a final selection. Of course, this is only one person's take on mutual fund investing, but for those of you (like me) who are pressed for time, it's a helpful addition to the process of selecting funds.

I recently received this short read as a free promotional item offered with my subscription to Morningstar FundInvestor. I almost didn't read it, because I thought it was going to be too basic for someone who has been investing in equity mutual funds for over thirty years.
Well, I am glad I put aside that belief and spent a few hours of my time to read this well written book by Russel Kinnel. Sure it contains a lot of basics, but what is wrong with being reminded of basic fund investment advice. Every time I play golf I think of the basics of the swing. We all need to be reminded of basic investment advice.
However, this small book contains much more than basic fund investing advice. Mr. Kinnel shares with the reader his many years of experience in researching and dealing with hundreds of funds and fund advisors. He recommends funds and fund advisors although he makes the point that funds can drift from their objectives and advisors come and go, so his recommendations may change since the book was published. Mr. Kinnel doesn't pull any punches in his evaluation of funds. If the fund is a good one over the long term he says so. If the fund is a stinker, he says that as well in exactly that way. It's a STINKER!
I highly recommend this book to anyone investing in mutual funds. It contains many nuggets of wisdom and will bring your vision back to the basics of mutual fund investing.

I am very surprised this has only 6 reviews. The book is full of useful information on how to evaluate funds, well organized, easy to read. I am taking notes from it at this moment for a report I am preparing for my own firm. I started with the kindle edition and ended up ordering the hard copy as well because I want the graphs.

This book is well written and, in the typical Morningstar style, makes what many fund managers want you to believe is a very complex subject, quite simple.

Mr. Kinnel separates the hype of what worked well over a couple of years from the statistically valid predictors of performance. He even gives you the odds of investing.

While I don't agree with all of Mr. Kinnel's fund selections, they are well thought out and methodically selected. Much of the mutual fund industry will hate this book, which is exactly why you should read it.

How a Second Grader Beats Wall Street: Golden Rules Any Investor Can Learn

Morningstar has been at it for a while now and again bring out the best of information for the small investor to read with Fund Spy.With today's market roller coster moves, Kinnel offers steps for the reader to invest their hard earn money with. Also the author offers his top picks in a Morningstar method for investing in mutual funds.

Easy read, breaks mutual funds down into easy to understand pieces and if you still don't get it, Kinnel gives you his top 20 favorites.

Morningstar was founded in order to cover mutual funds. What better source to learn about mutual funds from if not the SOURCE? Mutual funds are like cars, where in order to find how they work, one has to look under the hood. This is exactly what this book is all about. Kinnel is the Director of Mutual Fund Research for Morningstar, Inc, and he teaches readers how to select the best mutual funds. Since these funds are all different, people will benefit from reading this book.

In selecting the right fund, investors should answer some questions such as:

* Is the fund manager invested in the fund with his or her personal funds?
* What is the expense ratio?
* What is the fund's strategy?

Chapter 10 includes funds that passed the author's screening criteria. They include American Funds Fundamental Investors, Fidelity Spartan Total Market Index, and Vanguard Primecap Core.

- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

If you invest in Mutual Funds, this is one you should have in your library.

I decided to not buy this book because after reading excerpts from it on google I decided that Mr Kinnel's biased approach was more a sales pitch for mutual funds than it was an investment guide. For instance under his 10 reasons to buy a mutual fund He states that diversification is better in a Mutual Fund than an individual can get. I think a truer statement would be that the concept of mutual funds makes it possible to get more diversification than an investor might get on his/her own. Actual diversification would depend on the funds mandate as well as the managements ability to invest.
He then states that funds have greater tansparency than any other managed account.
This would seem to be an overstatement since I doubt that Mr.Kinnel has audited all managed accounts and he does not state what he bases his opinion on. I know of no study that would back up his statement.

I could go on about his overstatements and obvious misstatements such as, getting in and out of a fund every day at net asset vailue, until I had a book written, but that is not my intent.

I think his book is a thinly veiled sales pitch and is of little use as an investment guide.