Mutual Fund Fees

Mutual funds are subject to similar fees. Fund managers don’t offer their services pro bono, but rather charge fees that can be effectively measured by the expense ratio, or the percent that the fund deducts per year to cover operating costs. Over time, a high percentage can eat away at the growth of the fund, and what’s more important, each dollar taken away in fees now doesn’t have a chance to grow exponentially over time. Low expense ratio funds will consistently outperform high fee funds since high expense ratio funds are at an immediate disadvantage and have to beat the market even more soundly just to recoup their high operational costs. We will try to find funds with low fees but solid management and companies.