Mutual Fund Fees Jump

August 20, 2009

My friend Allan Roth sent me a link to an article he wrote for Money Watch:

Mutual Fund Fees Jump 5 Percent

It’s an interesting article. Check it out.

3 responses to Mutual Fund Fees Jump

  1. One other fund family to be wary of is TIAA-CREF,
    who has announced at least the possibility of an
    expense rate hike….even, if I was reading the
    mailing right, a 12b-1 fee(!) on several funds.

  2. In my opinion it actually makes sense that fees would go up when the value of funds go down – as the fee is based upon the $ value of funds invested.

    If the value of the funds goes down 30% the fee goes down 30%. Thus, since fund balances are down, in order to make more money the fund company needs to raise the fee.

  3. David.

    You are right in a sense but shouldn’t the industry share some of our pain and absorb some of the loss? I happen to think so but this is a judgement.