PT  - JOURNAL ARTICLE
AU  - John A. Haslem
TI  - Assessing Mutual Fund Expenses and Transaction Costs
AID  - 10.3905/joi.2006.650144
DP  - 2006 Aug 31
TA  - The Journal of Investing
PG  - 52--56
VI  - 15
IP  - 3
4099  - https://pm-research.com/content/15/3/52.short
4100  - https://pm-research.com/content/15/3/52.full
AB  - Mutual fund expenses are much too high, which reflects the lack of pricing competition. It can be concluded from this that fund independent directors are not performing their fiduciary responsibility as defined under The Investment Act of 1940. This article provides an analysis for assessing the reasonableness of a mutual fund's total expense ratio. It concludes that disclosure of brokerage commissions and implicit trading costs remains effectively hidden and completely hidden, respectively, from fund shareholders. This must change and this study provides an approach for doing so.TOPICS: Mutual funds/passive investing/indexing, manager selection