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November 23, 2012

Make sure to minimize your mutual fund fees

AP Personal Finance Writer

BOSTON — Price-conscious or not, consumers invariably slip from time to time. What's the big deal if you buy something you want for $1.50 at a convenience store rather than spend $1 at a discounter?

It can seem that way with mutual fund expenses, although investments clearly aren't impulse buys. Many investors give little thought to the impact of choosing a fund that charges 1.5 percent over another charging a 1 percent expense ratio. Given that the stock market frequently moves a few percentage points in a single day, do those seemingly minor pricing differences really amount to much over the long run?

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