Home Add to Favorite Contact Submit  
             22 November, 2019
 

    
Category:  Articles » Finances » Investing

 

Investors Should Pay Attention to Fund Costs

Popularity:
         Views: 1252
2009-09-12 03:38:11     
Article by Alex Villanueva

The stock market is an excellent way to grow your savings in the long term. Many people decide against investing individual stocks and decide to put their money in mutual funds. In general, this is a good idea. However, many only pay attention to performance. Fees are almost an afterthought (if they are even noticed). This is a bad idea.

The annual fee of a mutual fund is usually referred to as the expense ratio. This number does not seem high. Usually it is around 1-2% a year. Most everyday people would not consider that a burden. But overtime these fees really add up. Remember, fees are taken every year and taken as a percentage. You will suffer from negative compound interest. And remember, in the long run the vast majority of mutual funds don't out perform the index. But investors still have to pay fees, which means their money would have just been better off in an index fund.

A big fee you should look out for are "load" fees. Usually they are "front-end", which means they are charged upfront. They are used to compensate the broker. Often this fee is around 5%. This is huge. It will be very difficult for a mutual fund to outperform its index with a 5% penalty and management fees every year. But also remember that most people don't stay in the same mutual fund for ever. Hot funds go cold. Fund management constantly changes. If you have a tendency to be putting and pulling money have mutual funds with load you will pay a lot in fees. This is why no load mutual funds have greatly increased their popularity in recent years.

Specialized in: Investors - Pay Attention - Fund Costs
URL: http://www.noloadlist.com
Print article      Bookmark this page
Related Articles 
Share Market Tips Provider (Popularity: ): Share market has now gain a huge status nowadays and growing on day by day. It was started some around 12th century in France. The reason for launching of this market was increased debt in the agricultural community. This market was brought into existence to manage all the debts. This was done with the help of banks and the people who are known as the brokers. And now the development ...
Equity Tips By CapitalHeight (Popularity: ): Equity Tips provided by Stock Advisory Company are the work of research and experience of Stock Market. In this section of market the companies provide Tips related to Capital Market both on Intraday and Delivery basis. The Tips are provided by using various methods, software, Charts and many more, and through these methods they evaluate various tips such as stock tips, commodity tips, equity tips, mcx tips, ncdex tips etc.Stock ...
Public Relations Services Can Help Penny Stocks Company Receive Greater Coverage (Popularity: ): Many questions need to be answered when you think of hiring public relations services from a third party company to manage your media and public relations, assist with promotion and advertising as well as boost company marketing efforts. Here is a list of questions you should ask to define your needs to opt for an investor relations firm. 1) Do you get PR as per your capability? 2) How is ...
Planning Your Retirement: Some Aspects That You Must Look Into (Popularity: ): Are you thinking of making plans for your retirement? Well it is never too late. It is better that you start planning your retirement as early as possible so that you need not be anxious about your financial condition after retirement. We in fact started planning our retirement when my husband was 30 years old. We decided to start making savings from the very early stage so that our children ...
A Guide to Getting the Best Stocks Hints List (Popularity: ): There are lots of stocks hints lists on the market guaranteeing your financial independence through doing exactly what they say, but common sense tells us better. Truthfully, however, there are still a handful of lists which are more than worth their purchase prices and are capable of delivering smart sound stock picks right to you. Let's take a look at the top three things to look for in the best ...


Related Business 
Mutual Fund Prospector (Popularity: ): Monthly newsletter for independent mutual fund investors. Model portfolio and detailed performance data from 40 fund families.
Aegis Fund, Ltd. (Popularity: ): Diversified investment fund for investors looking for alternative asset management.
One Super Fund PTY. LTD. (Popularity: ): Life Insurance protects your loved ones with a lump sum payment in the event of your death, or upon diagnosis of a terminal illness. One Super fund has a totally transparent service where all costs are agreed at the start of the job. We explain the process to our clients and keep them informed of its progress until completion. Our aim is to save you costs by paying only one ...
Eagle Rock Diversified Investment Fund (Popularity: ): Hedge Fund managed by Eagle Rock Partners. An exclusive membership-driven Hedge Fund Opportunity, for accredited potential individual, IRA, pension, corporate, trust, endowment, and family office investors
Premier Pay Cards (Popularity: ): If you need prepaid debit cards, then Premier Pay Cards is the right source. Pay your employees easily and avoid the costs associated with preparing, printing and distributing physical paychecks. Contact us to make a query.
Hedge Fund Lounge (Popularity: ): Site for service providers, hedge fund managers, or investors. FREE and OPEN FORUM for all parties to be heard.
RBD Fund, LLC. (Popularity: ): RBD Fund, LLC is a residential real estate investment fund created to address the profitable opportunities that exist in the California residential real estate market and designed to be capitalized by investors. The fund buys, renovates and resells single-family and multi-family residences throughout California. Since 2009 the managing partners of RBD Fund have managed the purchase, renovation and selling of nearly $30 million in real estate.
Stock Tips In India (Popularity: ): Money Creators are completely devoted for the motive of developing attention among the investors for better investment strategies with regards to growth. Our objective is to offer youmore and more possibilities to earn your best by using our Trading Solutions. Experience allows us to understand the needs of both Traders and Investors.
Manor Park (Popularity: ): Guernsey. An independent international investment fund management company specialising in guaranteed and structured investment funds to non-US investors. Provides fund prices and past returns.
Play Attention (Popularity: ): Offers a helmeted virtual reality system that is attached to a personal computing system to improve a student's ability to pay attention.