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March 18, 2013

Fund owners pay a hidden cost for trades

  • A new study shows a fund's expense ratio doesn't come close to capturing the full costs that investors pay.
    • By MARK JEWELL
    AP Personal Finance Writer

    BOSTON — There is no shame in being cost-conscious.

    Price is often the critical factor when mutual fund companies compete for business. They want to be able to tout the lowest expense ratios for their funds. That's the figure that shows how much investors pay to cover operational costs. But it isn't the only cost you should be thinking about.


     
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