Q. How to quantify a fund's expense's impact on my investment?
A. We all know that expense drags your investment's returns. The main cost of owning a mutual fund is measured by the expense ratio, the costs include the cost of managing the portfolio, legal, accounting and admin expenses, and sometimes marketing expense too.
Average fund expense ratio in the U.S. fund industry is about 1.20%, it may sound like a small percentage number, but it will add up over time.
You can use the following Fund Expense Impact calculator to easily figure out such expense's impact on your return.
Just enter your initial investment amount, the fund's average annual return, the fund's average annual expense ratio, and your investment years, you will see how much total fund expense you will incur and how much of your profit will be eaten by it!
A. We all know that expense drags your investment's returns. The main cost of owning a mutual fund is measured by the expense ratio, the costs include the cost of managing the portfolio, legal, accounting and admin expenses, and sometimes marketing expense too.
Average fund expense ratio in the U.S. fund industry is about 1.20%, it may sound like a small percentage number, but it will add up over time.
You can use the following Fund Expense Impact calculator to easily figure out such expense's impact on your return.
Just enter your initial investment amount, the fund's average annual return, the fund's average annual expense ratio, and your investment years, you will see how much total fund expense you will incur and how much of your profit will be eaten by it!
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