Mutual fund fees can erode investment gains from "summary" of Common Sense on Mutual Funds by John C. Bogle
The insidious nature of mutual fund fees cannot be overstated. While they may seem insignificant at first glance, these fees have the power to significantly diminish the long-term performance of an investment portfolio. The compounding effect of fees can erode investment gains over time, leaving investors with substantially less money than they would have had if they had chosen a low-cost fund. It is crucial for investors to understand the impact of fees on their investment returns. Even seemingly small differences in fees can have a substantial effect on the overall performance of a fund. For example, a fund with an expense ratio of 0.50% may not seem much different from a fund with an expense ratio of 0.25%, but over time, the higher-cost fund will significan...Similar Posts
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