Question

Understanding Fees is critical to understanding investments.Fees can take a huge bite out of investment returns. Which fees might a Mutual Fund have that can impact your return?

Answer 1

Mutual funds can have management fees, expense ratios, front-end and back-end loads, and transaction fees that impact your investment returns.

Step-by-step explanation:

Mutual funds can have various fees that impact your investment returns. Some of the common fees include:

Management fees: These are fees charged by the mutual fund company for managing the fund. They are usually a percentage of the total assets under management.

Expense ratio: This is the annual fee charged to cover the operating expenses of the mutual fund.

Front-end load: This is a sales charge paid at the time of purchasing the mutual fund shares.

Back-end load: This is a sales charge paid when selling the mutual fund shares.

Transaction fees: These are fees charged for buying or selling mutual fund shares.

These fees can significantly reduce your overall investment returns, so it's important to carefully consider them when choosing a mutual fund.