Things That Fund Managers Don’t Say Enough Additional ones could be:
1. "I eat my own cooking."
2. "Bonuses are based on long-term risk-adjusted performance and paid in restricted shares of the funds we manage."
3. "This is not the same fund at $10 billion in assets that it was at $100 million."
4. "Most of my outperformance was driven by one lucky stock pick and is therefore not repeatable."
5. "I will close the fund to new investors at $X assets and I really mean what I say."
6. "I will not open a clone fund of the fund I just closed to gather more assets."
7. "The business of managing my fund company takes up more of my time than managing the funds itself and I care more about my business and gathering assets than your funds' returns."
8. "There are defined fee breakpoints as assets grow."
9. "The private account I used to run that had great returns and that I am now hyping in my prospectus for this new fund was for a handful of accounts at a small asset base and its performance is not repeatable. Moreover, I had other private accounts that did terribly and which you don't know anything about."
10. "I am growing older and am not the same man or woman I once was so I can't research stocks with the intensity or drive I once did. In effect, I've lost my edge."
11. "Now that the fund is big based on past performance I plan to closet index and hew to the benchmark and just collect fees for mediocre performance."
12. "I plan to take huge risks with your money prior to my multiple funds hitting their three year performance marks, hoping that at least one of them will hit a home run and gather assets so I can then closet index. The other funds that fail terribly with other people's money I will discretely close and liquidate and you'll never be the wiser"
I could go on, but......
John Waggoner: How The Taxman Hit 10 Big Funds
Suggestions For Fido Bond Funds If she wants to eliminate volatility or risk of principle loss with some of her money you may want to talk with her about CDs. I believe they may do better than bond funds "for many years" going forward as you stated. Below I attached a link to Bankrate.com, but I'm sure you can build a ladder within Fidelity also. I know you can at Schwab.
https://www.bankrate.com/landing/cd-rates/?pid=semgdtexactbankrate&ttcid=bankrate|c|kwd-12967706|g|900
5663&gclid=Cj0KCQjw-uzVBRDkARIsALkZAdn4hufz7A77qdsYgiOvc9oacUFBCfBqIzzxk2D
533ZPnOTKMsgzNYIaAtIXEALw_wcB
