RT Journal Article SR Electronic T1 Bond Fund Returns and Expenses JF The Journal of Investing FD Institutional Investor Journals SP 8 OP 16 DO 10.3905/joi.1999.319426 VO 8 IS 4 A1 William R Reichenstein YR 1999 UL https://pm-research.com/content/8/4/8.abstract AB This study examines the relationship between expenses and net return among bond funds with similar style - that is, duration and quality. It concludes that there is a strong, negative relation between funds' expense ratios and net return. Most evidence implies that fund expenses, whether in the form of an annual expense ratio or a one-time sales load, are deadweight losses to the investor. The evidence suggests that the lowest-cost bond fund within a sample of similar-style funds will consistently produce top quartile net returns over five-year and longer horizons. Low costs do not produce a persistent net return advantage over shorter horizons, however.