Understand the impact of fees on investment returns from "summary" of Investing for Dummies by Eric Kevin Tyson
Fees can eat into your investment returns more than you may realize. Even seemingly small fees can add up over time, significantly impacting your overall returns. It's important to understand the various fees associated with investing and how they can affect your bottom line. One common fee that investors face is the expense ratio of mutual funds. This fee covers the operating expenses of the fund and is expressed as a percentage of the fund's assets. While expense ratios may seem small – typically ranging from 0.5% to 2% – they can have a big impact on your returns over time. The higher the expense ratio, the more you'll pay in fees, reducing your overall returns. In addition to expense rati...
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