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Mutual Fund Fees
Posted: Thu Jun 06, 2024 9:00 am
by Cyclone
A noobie here.
1.How and when do brokers such as SBI charge the fees for the mutual funds? For example an Emaxis Slim Emerging Countries says 0.1581% per year, so this percent comes of what ever money I use to buy the funds? I.e. it's not related to profits or loss?
2. Some of the better performing funds have 2% fee and a trust retention fee of 0.5% but their performance far outstrips the lower fee ones so seem a better choice - what am I missing?
Re: Mutual Fund Fees
Posted: Thu Jun 06, 2024 9:14 am
by RetireJapan
Cyclone wrote: ↑Thu Jun 06, 2024 9:00 am
A noobie here.
1.How and when do brokers such as SBI charge the fees for the mutual funds? For example an Emaxis Slim Emerging Countries says 0.1581% per year, so this percent comes of what ever money I use to buy the funds? I.e. it's not related to profits or loss?
2. Some of the better performing funds have 2% fee and a trust retention fee of 0.5% but their performance far outstrips the lower fee ones so seem a better choice - what am I missing?
The fund fees are taken from the assets of the fund -you never see them but they come out of your investments.
'Better performing' recently, but there is no guarantee they will continue to perform well and no way to tell in advance which funds will perform well. The higher fees mean that on average you will make (much) less money over time.
Re: Mutual Fund Fees
Posted: Thu Jun 06, 2024 10:58 am
by Cyclone
Thanks!
I think read about "no load" ones - are these like the Emaxis Slim series or different? I tried searching in both English and katakana on SBI but nothing came up.
Re: Mutual Fund Fees
Posted: Thu Jun 06, 2024 11:05 am
by adamu
Re: Mutual Fund Fees
Posted: Thu Jun 06, 2024 12:42 pm
by RetireJapan
Cyclone wrote: ↑Thu Jun 06, 2024 10:58 am
Thanks!
I think read about "no load" ones - are these like the Emaxis Slim series or different? I tried searching in both English and katakana on SBI but nothing came up.
No load funds don't have purchase or sales fees.