Costs of investing can diminish returns from "summary" of Common Sense on Mutual Funds by John C. Bogle
The costs of investing are a critical consideration for investors, as they have a direct impact on the returns they can expect to earn. When investors buy mutual funds, they often focus solely on the fund's past performance, without giving much thought to the costs associated with investing in the fund. However, these costs can significantly reduce the returns that investors ultimately receive. One of the primary costs of investing in mutual funds is the expense ratio, which represents the annual fees charged by the fund to cover its operating expenses. These expenses can include management fees, administrative costs, and marketing expenses. While these fees may seem small at first glance, they can add up over time and have a ...
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