investment fees / mutual funds

High Mutual Fund Fees Tied to Fund Complexity

 “The larger the fee the less that it performs. It’s kind of a straight line.” financial adviser David Marotta charted the fees and 10-year returns for dozens of S&P 500 index funds. “Since these funds all track the same index and their performance is roughly the same, the fees will largely determine how much of the return the investor keeps and how much goes to the mutual fund company.”

“The fees for the S&P 500 index funds he analyzed… ranged from one-tenth of a percent to 2.5 percent of the invested assets.” 

Read the Squared Away Blog post at: https://squaredawayblog.bc.edu/squared-away/high-fees-tied-to-mutual-fund-complexity/

Fees really do matter! Check out this useful tool: The FINRA Fund Analyzer https://tools.finra.org/fund_analyzer/ that shows in dollar the impact of fund fees over time.

Source: Financial Planning for Women