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Calculating Fund Costs

As noted, mutual funds have various costs that add up, directly taking away from net shareholder performance.

Andrew Tobias, a well-known financial writer, noted, “Imagine a race where your horse has a 20-pound jockey and the others have 100-pound and sometimes even 200-pound jockeys. Guess which horse wins. This is how it works with mutual funds. Some have 20-pound jockeys. Most have 100- and 200-pound jockeys—hefty fees and taxes that weigh down performance. Over the long run, this makes a huge difference.”[9]

[9] See Andrew Tobias, “Heavy Load,” Worth, October 1999, p. 83.


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