One of the biggest problems with mutual funds is that investors chase past performance. They get in at the worst times when the stock in the funds are most expensive, and they get out when stocks are cheap and short term performance has lagged. Despite Bruce Berkowitz’s excellent long term and current year track records, he is still facing redemptions after really his first bad year in 2011. This doesn’t make sense but it is far too common.
http://www.gurufocus.com/news/173134/fairholme-fund-continues-to-face-redemption-pressure
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.