Avoid highcost funds from "summary" of Let's Talk Mutual Funds by Monika Halan
When you are investing in mutual funds, one of the key things to keep in mind is the cost associated with the fund. High-cost funds tend to eat into your returns over the long term, thereby reducing the amount of money you can potentially make. This is why it is important to avoid high-cost funds and opt for lower-cost alternatives instead. High-cost funds typically have a higher expense ratio, which is the annual fee charged by the fund to cover operating expenses. This fee is deducted from the fund's assets, which means that it directly impacts your returns. In addition to the expense ratio, high-cost funds may also have other fees such as front-end loads or back-end loads, which further reduce your overall r...
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