What should I know about mutual fund fees?

When it comes to investing in a mutual fund, it’s important to understand the fees associated with the fund. Mutual funds are typically sold with an upfront fee, known as a sales charge or “load.” This fee is paid to the broker or financial advisor who is helping you purchase the fund. Additionally, mutual funds are subject to ongoing fees to cover the cost of managing the fund. These fees usually include expenses such as management costs and/or a 12b-1 fee. The cost of a mutual fund is often reflected in the expense ratio, which is a measure of how much of the fund’s assets are used to pay expenses. Generally, the lower the expense ratio, the better the return on investment. It’s important to know that fees vary greatly from one mutual fund to the next. It’s important to compare the expense ratios and other fees associated with different funds before making a final decision. It’s also important to know that when it comes to investment fraud law in California, mutual fund fees must be clearly disclosed. The disclosure should include all fees charged by the broker or financial advisor as well as any fees associated with the mutual fund itself. Knowing the fees associated with a mutual fund can help you make an informed decision when investing your hard-earned money.

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What should I know about mutual fund fees?

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