Mutual Funds: Your Money, Your Choice... Take Control Now and Build Wealth Wisely

Chapter 18. You Should Be Concerned About the Costs of Owning Mutual Funds

“Mutual Funds Load up on Fees.” This headline appeared on an article in The Wall Street Journal, in April 2002.^[1]

Many investment professionals agree that investors, in general, pay too little attention to the costs of owning a mutual fund and concentrate instead only on the reported performance numbers. This is often a costly mistake. Let us be clear at the outset: You should be very concerned about the costs of owning your mutual fund!

Investors know that mutual funds cost money to operate—after all, investment companies are not running a charity. What investors sometimes overlook is the full extent of the costs, some of which may be hidden. Many think that the costs are ...