Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
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As I understand it her portfolio is at one firm, she uses a single "financial advisor" (stock bookie to me) to whom she pays an AUM, and her portfolio contains several, possibly numerous, actively managed mutual funds. It may also contain some index funds. A second brief search came up with a government website which in simple laymen's terms lists and describes fees which mutual funds charge. According to the website a fund's prospectus reveals the fees it charges. That means to me one would have to obtain a prospectus of each mutual fund in her portfolio and investigate its fees and other expenses. "Mutual Fund Fees and Expenses As with any business, running a mutual fund involves costs. For example, there are costs incurred in connection with particular investor transactions, such as investor purchases, exchanges, and redemptions. There are also regular fund operating costs that are not necessarily associated with any particular investor transaction, such as investment advisory fees, marketing and distribution expenses, brokerage fees, and custodial, transfer agency, legal, and accountants’ fees. Some funds cover the costs associated with an individual investor’s transactions and account by imposing fees and charges directly on the investor at the time of the transactions (or periodically with respect to account fees). These fees and charges are identified in the fee table, located near the front of a fund’s prospectus, under the heading "Shareholder Fees." Funds typically pay their regular and recurring, fund-wide operating expenses out of fund assets, rather than by imposing separate fees and charges directly on investors. (Keep in mind, however, that because these expenses are paid out of fund assets, investors are paying them indirectly.) These expenses are identified in the fee table in the fund’s prospectus under the heading "Annual Fund Operating Expenses." In the fee table, under the heading of "Shareholder Fees," you will find: Sales Loads (including Sales Charge (Load) on Purchases and Deferred Sales Charge (Load)) Redemption Fee Exchange Fee Account Fee Purchase Fee In the fee table, under the heading of "Annual Fund Operating Expenses," you will find: Management Fees Distribution [and/or Service] (12b-1) Fees Other Expenses Total Annual Fund Operating Expenses" From: https://www.investor.gov/introductio...on%20investors. It may be possible that her broker can charge her commissions/fees on her trades and other matters as well as getting paid the AUM. That thought makes me cringe. One would need to read her engagement contract to find out. "Not all fees come packaged under the same umbrella. You may see the following under your brokerage contract or regular statements: Annual fees Research fees (for investment data) Inactivity fees (if you aren't trading regularly) Fund fees Account fees Assets under management (AUM) fees" From: How Brokerage Fees Work
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"No one is more hated than he who speaks the truth." Plato “To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine Last edited by manaboutown; 03-14-2024 at 06:23 PM. |
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#48
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Also, the regulator requires each fund to disclose their investment holdings I believe quarterly.The filing is available on the US SEC’’s EDGAR database, The filing will likely show all holdings of a fund, not only the top 10 or whatever. I can’t compare the Morningstar and FINRA products. |
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"No one is more hated than he who speaks the truth." Plato “To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine Last edited by manaboutown; 03-15-2024 at 09:21 AM. |
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