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Investment Fee study
Old 01-10-2007, 05:03 PM   #1
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Investment Fee study

“On a $10,000 investment earning an annual return of 10 percent over 20 years, the average investor in no-load, no 12b-1 fee index funds would pay approximately $2,582 in operating expenses. The average investor holding a no-load fund that charges a 12b-1 fee would pay $3,744, while the average investor holding load index funds would pay $7,600 in operating expenses. Although one would expect using a professional adviser to improve an investor’s performance, instead the investor pays a significant penalty … We found that load index funds charged substantially higher fees – even before counting the fees paid to the broker – than true no-load (no 12b-1 fee) funds. In other words, when investors used brokers they paid twice: first, they paid the broker; second, they paid a broker penalty in the form of higher fund fees.”

Fees will surely eat up your total return over the long term. This is an interesting study.
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Re: Investment Fee study
Old 01-10-2007, 06:54 PM   #2
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Re: Investment Fee study

Just think of the cost if you were dumb enough to invest $1,000,000 with these funds/brokers.

Hey, on the bright side they probably would take you out to lunch once a year.
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Re: Investment Fee study
Old 01-10-2007, 09:36 PM   #3
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Re: Investment Fee study

Originally Posted by Bikerdude
Just think of the cost if you were dumb enough to invest $1,000,000 with these funds/brokers.

Hey, on the bright side they probably would take you out to lunch once a year.
At $1,000,000 they would get NAV pricing, and not pay a load...........
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)

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