Financial Information
Why are mutual fund companies with high expenses still around?
Question : Why are mutual fund companies with high expenses still around?
I’ve noticed that there are numerous, numerous mutual fund companies that have funds with expense ratios exceeding 2, 3, and even 4 percent. With fund companies like Vanguard and Fidelity offering funds with expeses that are a fraction of that, why are people still investing in high-expense funds?
mutual fund companies
Best answer:
Answer by chatsplas
Because investors don’t do their homework
-
-
#3 written by Hunter 1 year ago
-
#4 written by witz1960 1 year ago
One would expect (at least hope) that companies that have the higher expense ratios are doing more research and consequently that research yields information that leads to better returns.
Would you be willing to pay a slight bit more in expense and / or sales load for a fund that has delivered consistently better returns than its peers?
- Comment Feed for this Post
The same reason why people invest in no load mutual fund.
They are clueless on how the market works and not smart enough to make investment decision.