Fees matter The amount of fees you pay when investing has a significant effect on the performance of your investments. Seemingly small differences can have a big effect on your overall long-term investment returns.
So what do I need to know about mutual funds fees? Mutual fund fees can be complicated and there’s a lot to know so let’s start with some basics. 1 Sales Charges There are several sales charges that may be charged when you purchase, sell or switch mutual funds.
Front-end Sales Commission
Front-end sales commissions are paid from your initial purchase before your money is sent to the fund manager. For example if you have $2500 to invest in a mutual fund with a front-end sales commission of 1% then $25 will go to the dealer and $2,475 will be invested in the mutual fund. Clients can negotiate front-end sales commissions. Rates can vary and be as low as 0% commission. ...Click here to read the full article.