How Does a Mutual Fund Compare to an Index Fund?

The cost of owning a mutual fund, on average, is 2%. And how does that compare to an index fund? You can buy an index fund of S&P 500 index fund for as little as four basis points. Over time, you don't appreciate it much in a year. But over 50 years, believe it or not, a dollar invested at 7% grows to around $32.