RT Journal Article
SR Electronic
T1 Assessing Mutual Fund Expenses and Transaction Costs
JF The Journal of Investing
FD Institutional Investor Journals
SP 52
OP 56
DO 10.3905/joi.2006.650144
VO 15
IS 3
A1 John A. Haslem
YR 2006
UL https://pm-research.com/content/15/3/52.abstract
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