Expense Ratio
Why is the expense ratio one of the most important bits of information to know when considering a mutual fund?
Why is the expense ratio one of the most important bits of information to know when considering a mutual fund?
The expense ratio shows you the cost of owning that mutual fund (some uninformed people also pay loads, but that is nothing more than a commission that goes to the middleman squeezing between the investor and the investment). There is not only a correlation, but causation between cost and returns when it comes to investing in mutual funds.
Get those expense ratios down, down, and down and your returns will go up, up and up. No-Load index mutual funds are the solution once the education on the topic has been completed. Read Financial Happine$$ and What Color is the Sky for the details. Awake to the possibilities!