Am I the only one that finds the "NAV erosion" discourse to be utterly stupid? CC fund investors talk about "oh this fund doesn't have any NAV erosion" and you look at the fund and it's some single stock CC ETF for a stock that's been performing well since the fund was launched. If you don't understand how these funds work, isn't it incredibly dumb to be invested in them? Before I invested into factor funds, I read books and academic articles about factor investing. Before I invested in a convertible arb fund, I read the textbook written by the fund manager on convertible arb. Why do "income investors" think it's okay to be so ignorant about the funds they invest in?
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16 Comments
Kar Yung Tom@karyungtom · 19h
I guess what you're making me realize it's very similar to other styles of investing that use past performance too much. Funds have "no nav erosion" or "there's CC funds that aren't bad" could sometimes be a form of focusing on past perforamnce.
Ade O@kingadey · 19hEdited
They not gon' like you, Max! Lol!
Nathan Robert@nathan.robert · 18h
Everyone on this app used to SHILL $BLOX and said it had no NAV erosion, they hop from 1 cc to another newer one with no history
K petrov@kpetrov · 19h
Investing directly into the stock could be as dumb as in cc one
Michael @fp_project · 7h
That’s incredibly well-said! As a CC investor myself, it’s becoming increasingly frustrating to witness individuals commenting on a fund’s NAV decline without considering the underlying assets. To be fair, it’s like a carrot on a stick. Fund managers entice new investors who lack investing experience, with yield, only to face this situation later on.
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