Study sheds light on funds’ hidden costs
There is no shame in being cost-conscious.
Price is often the critical factor when mutual fund companies compete for business. They want to be able to tout the lowest expense ratios for their funds. That’s the figure that shows how much investors pay to cover operational costs. But it isn’t the only cost you should be thinking about.
There’s another significant cost that’s harder to quantify, isn’t disclosed, and remains largely invisible: expenses from the trades that the fund manager makes.
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