Beware of Hidden Costs Lurking in Your Mutual Fund Portfolio!
As an investment professional it pains me to write this: In the world of mutual fund investing, you don't always get what you pay for. Often, you don't even know how much you are paying.
When it comes to clothes, meals, hotels, cars and many other products and services, we are accustomed to paying more for higher quality. Unfortunately, that rule of thumb does not apply to investments.
All mutual funds charge fees. There's nothing wrong with that. Managers need to get paid, and the funds incur costs as part of conducting business.
However, some funds are more expensive than others. When new clients come to our firm, they generally own funds with high expense ratios. When I point this out, they sometimes ask if they are paying a higher fee for better
