A bit of good news for investors: average expense ratios for equity, bond and hybrid mutual funds declined in 2011, according to a report released today from the Investment Company Institute. Fund investors paid an average of 79 basis points for equity mutual funds and 62 basis points for bond funds, down 4 points and 2 points, respectively, from 2010.
ICI partly attributed the decrease in mutual fund expense ratios to industry competition and investors’ continuing shift into lower-cost funds. In particular, investors are gravitating toward index funds, whose expense ratios are generally lower than those of actively managed funds.
Register or login for access to this item and much more
All Bank Investment Consultant content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access