This is a reason why investors in mutual funds have an uphill fight.Shareholders in the giant Fidelity Magellan Fund (FMAGX) recently saw their fees leap to $124.1 million for a single year via a 35.9% boost in the basic expense charge. Meanwhile, the fund, as of April 22, is down 43.8% in the past 12 months.It's almost a percentage-for-percentage swap: The more of your money it lost, the more it charged.And this Fidelity fund is hardly alone. More than 25% of mutual funds raised their expense ratios in 2008, according to Morningstar. Most of them acted for one or both of two related reasons: * Fewer assets means higher unit costs per dollar invested. * Management contracts often call for fee cuts when assets rise -- and vice versa. Market losses in 2008 were some of the largest in history, so assets fell.Fidelity Magellan's story is a little different from most. Its managers got big raises in 2008 based on their performance the three previous years. This year they'll likely take cuts.But the impact is the same: Magellan shareholders are paying more. While losing more.http://articles.moneycentral.msn.com/Investing/MutualFunds/i...Unfortunately there isn't an easy solution otherwise most people would be doing it, and those that think it is easy end up losing their money via people like Madoff.Rich
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