Mutual fund expense ratios rose last year, but falling sales charges cancelled out the change. According to a new report
from the ICI
, stock fund shareholders paid a total of 99 basis points total on average in 2009 and bond fund shareholders paid 75 bps. Of that, the average expense ratio ratio rose two bps, to 86 bps for stock funds and 65 bps for bond funds. Meanwhile, the average sale load dropped to only 100 bps.
The ICI also found that money market funds and funds of funds got cheaper in 2009; average total expenses for money funds fell four bps to 34 bps and the average expense ratio for funds of funds fell one basis point to 91 bps.
' John Kell covered
Neil Anderson, Managing Editor
Stay ahead of the news ... Sign up for our email alerts now