2min chapter

The Seen and the Unseen - hosted by Amit Varma cover image

Ep 271: Crossing Over With Deepak Shenoy

The Seen and the Unseen - hosted by Amit Varma

CHAPTER

Why Do Mutual Funds Charge Lower Fees?

Thew h t f c mutual frund. were doing the best for a long period of time. But now they are less than stellar, and have to charge higher fees. The index frund charges point one five, point two % as fees so if your performance just ends up being averaged, chances are you will learnto perform just because of the fee differential. Why do fron charge lower fees? Because they don't make any decisions on the stocks. They buy these or to buy whatever's in the index in the same vantage as the index. So you pay the money for the thinking.

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