What should I know about mutual fund fees?

When investing in mutual funds in Virginia, you should be aware of the fees associated with the investment. Mutual fund fees are either front-end or back-end, or a combination of both. Front-end fees are a one-time cost and are charged when you invest in the mutual fund. These fees usually range from 1% to 6% of the total amount you invest and are typically incorporated in the initial offering price. Back-end fees are also known as a redemption fee and is charged when you decide to sell the mutual fund. Much like front-end fees, back-end fees also vary from 1% to 6% depending on the mutual fund. In addition to these fees, there are also annual management fees. These fees are charged to cover the cost of managing the investment and can range from 0.35% to 1.5% of the total investment each year. Some mutual funds also charge additional fees for services such as investment advice and account maintenance. Finally, it is important to be aware of any taxes on mutual fund investments. Tax laws vary from state to state but in Virginia, any gains from mutual funds are subject to a 5.75% state income tax. When considering a mutual fund investment, it is important to factor in any fees associated with the investment into your decision-making process. Be sure to research any fees associated with a specific mutual fund before investing and always work with a trusted financial advisor to make the best investment decision for your financial future.

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What should I know about mutual fund fees?

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