What if those fees paid off?The illustration above assumes that the chosen mutual fund provided no value for its 1.5% fee. This is consistent with the overwhelming evidence that the majority of actively managed funds (those that pay a management team to pick the investments within the fund) do not outperform a relevant index fund (which just buys all the investments within the index, and saves a lot of money in the process). But approximately a third to a quarter of actively managed funds do outperform index funds. In these cases, the funds earned the fees they charged you.
How Wall Street Eats A Third Of Your Savings And Makes You Work Longer
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