Mutual funds have 'invisible' costs, study reports
Wednesday, February 27, 2013 - 11:07
in Mathematics & Economics
(Phys.org)—Investors often rely on the commonly published "expense ratio" of mutual funds as a predictor of performance, but this measure ignores "invisible" costs that occur when funds trade portfolio securities, which have a larger effect on performance, according to a new University of California, Davis, study.