6. Mutual Fund Expenses
June 2017
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Some of you think that when you invest in a mutual fund there are no cost. But as most of us realize there’s no such thing as a free lunch. I think we have to realize that it does take money to manage a mutual fund, so there needs to be some type of cost. Hidden cost of mutual funds can range from .3% to over 3%. As you can see this is a very large fluctuation, and this can have extreme effects on your earnings. I try to tell my clients to carefully analyze all expenses of mutual funds and try to get as close to or under .5%.