Fee Drag: Mutual Fund Fees

FIN 30600 · Investment Theory — Topic 1 · §6

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A front-end load bites once; an annual fee compounds every year. Which share class wins depends on how long you hold. Fees are one compounding drag — volatility is the other.

Two share classes

Investment
Fund A — front-end load
Fund B — level load
Presets
Fund A (front-end load) Fund B (level load + exit fee) No-fee reference Crossover