One of my funds that I am invested in is JIB Capital Preservation Fund and it has a .25% expense ratio. It only makes up 11% of all my investments but should I even own something with this high of an E/R? Thanks
mstrlucky74 asks,One of my funds that I am invested in is JIB Capital Preservation Fund and it has a .25% expense ratio. It only makes up 11% of all my investments but should I even own something with this high of an E/R? Thanks </snip>Depends on your access to a similar mutual fund with a lower expense ratio. (Perhaps a Vanguard fund with the same investment objectives.)In a world where Wall Street and insurance companies are looking to take 2.00% or more of your wealth each year in fees and costs, 0.25% doesn't look too bad.intercst
The real question is how the fund has performed. Looking at the expense ratio does not tell you anything about that. If it has outperformed the other funds in its class, then why worry about the expense ratio? I could not find a symbol for the fund, so I cannot look at a chart, which would be helpful.
Keep in mind, acceptable expense ratio depends on your reference point. Index funds do not require stock picking talent or research. Hence, they can have very low expense ratios.Managed funds must hire talented professionals to succeed. That gives them higher cost. But there are lots of other factors involved including size of fund, how overhead is allocated, etc. Bottom line is compare expense ratio with that of other similar funds, but ideally performance is so much larger, fractions of a percent is not a major concern if performance is good.Usually loads are the big expenses. If loads are involved, its better to look for a good performing no load.
opps.........link no good...........
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