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There are many factors to consider when selecting mutual funds for a portfolio. One factor is the fees associated with owning the mutual fund. For the mutual fund that you have selected for your portfolio, download and review the prospectus. In your initial post, provide answers to the following:

  1. What are the fees associated with owning this mutual fund?
  2. What are the annual fund operating expenses?
  3. Do you believe the fees are reasonable given your experience with finance?
Aug 27th, 2015

Hi there! Thank you for the opportunity to help you with your question!

One example is the fund FNCMX (a Fidelity fund that tracks the Nasdaq Composite Index, can be found here https://fundresearch.fidelity.com/mutual-funds/summary/315912709). This fund has a gross expense ratio of 0.55% and a net expense ratio of 0.29%. It also has a short-period redemption fee of 0.75% for shares sold within 90 days of purchase.


Annual operating expenses (from http://quote.morningstar.com/fund-filing/Prospectus/2015/1/29/t.aspx?t=FNCMX&ft=485BPOS&d=b6e67df763a8ef58542332b009440da7 )
(expenses that you pay each year as a % of the value of your investment)

Management fee

0.24%

Distribution and/or Service (12b-1) fees

0.06%

Other expenses

0.25%

License Fee

0.06%

Other

0.19%

Total annual operating expenses

0.55%

Fee Waiver and/or expense reimbursementA

0.26%

Total annual operating expenses after fee waiver and/or expense reimbursement

0.29%

Because of the fee waiver and/or expense reimbursement, these are actually fair fees. International funds, or actively traded funds will generally have higher expense fees than these, so, for my experience in finance, I would say these are valid fees.

Please let me know if you need any clarification. Always glad to help!
Aug 27th, 2015

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Aug 27th, 2015
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Aug 27th, 2015
Sep 20th, 2017
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