Chairman and Secretary of the CPC Party Committee of the National Development and Reform Commission Zhang Ping speaks at a press conference held as part of the 18th Communist Party Congress in Beijing, China, Saturday, Nov. 10, 2012. (AP Photo/Ng Han Guan)
News Summary: Study measures fund trading costs
Published: 10:24:32 PM, Thu 14 March 2013 UTC
BIG EXPENSE: A study of mutual fund expenses by three university professors focuses on costs from trades that fund managers make. They concluded that trading costs typically take a bigger bite out of investment returns than the operations costs reflected in a fund's expense ratio.
COST BREAKDOWN: Trading costs can include brokerage commissions as well as the impact that a fund's trade of a large block of shares can have on that stock's price. Typically, that impact hurts a fund's performance.
HIDDEN COST: Unlike expense ratios, fund trading costs are hard to quantify, aren't disclosed and remain largely invisible.
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