If your manager doesn't make this big investment, dump them

If your manager doesn't make this big investment, dump them: "Morningstar data on managers and their money

Managers investing no money in their funds had a meager 35 percent success rate.

Those investing between $100,001 and $500,000 had a 43 percent success rate.

Those with more than $1 million had a 47 percent success rate.

In U.S. equities, funds with no investment had a dismal 29 percent success ratio versus 39 percent for the top rung.

For international funds, there was a 32 percent success ratio for managers who invested nothing versus 68 percent for those with more than $1 million invested.

Balanced funds — investing in both stocks and bonds — showed a huge disparity: 32 percent success for managers investing nothing, and 85 percent for those investing $1 million or more.

Note: Morningstar looked at funds going back to 2009. Success is defined as a fund that outperformed its category peer group and a fund that has not been liquidated."



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