mickeyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
http://www.zeroalphagroup.com/news/113006_release.cfm
Fees will surely eat up your total return over the long term. This is an interesting 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.