BOSTON (AP) — It's easy to overlook what's important when it comes to saving money. Many people would sooner clip a coupon for shampoo than review the expenses they're paying to invest in mutual funds.
Cost is hardly the only consideration because a fund charging above-average fees may generate larger returns than a low-cost fund. But more often than not, any performance edge that a fund manager achieves is erased by the fees that are shaved off investors' returns.
The bottom line: Fees matter, especially when it's a product like mutual funds, which most investors will own for decades as they save for retirement.
The good news is that costs continue to come down. Fund expenses fell slightly last year, extending a long-term trend, according to an annual update Thursday from the Investment Company Institute, a trade organization.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
