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Catchthedisc OP t1_j6jwo9e wrote

Reply to comment by Rave-Unicorn-Votive in Are index funds really better than manage funds? by Catchthedisc

Yea, the expense ratio is high.

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CitationNeededBadly t1_j6jzhr4 wrote

is your managed fund still doing better even after fees? That's the usual issue - the fees often are more than the "gains" from active management.

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Catchthedisc OP t1_j6k0gbg wrote

Not sure honestly.

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KDBurnerTrey5 t1_j6kehw1 wrote

You should find out man. Best to know what you’re paying and why you’re paying it. Managed strategies aren’t bad and can be really successful but you need to know what you’re actually paying for so you can determine if it’s right for you.

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Catchthedisc OP t1_j6kh6pp wrote

>Best to know what you’re paying and why you’re paying it

Any tips for how to readily find that out?

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Arrasor t1_j6khlgy wrote

Gains minus fee. Compare result to gains in index fund.

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bkweathe t1_j6m51a3 wrote

Check the fund profile online. It will tell you the fund's returns over various time periods (always reported after expenses, by law) & the returns of the fund's benchmark (usually an index).

The profile will also disclose the fees, including the expense ratios, loads, 12b-1 (marketing) fees, etc.

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Catchthedisc OP t1_j6nshas wrote

Thanks!

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bkweathe t1_j6nuh43 wrote

Forgot the mention: you should have been offered a prospectus for each fund before you bought it. Each fund should also provide an annual report. This information should be in these documents, too

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KDBurnerTrey5 t1_j6kkqau wrote

Call your broker and have them explain the product and it’s value. If you really want to see if they’re trying to give you a poop product tell them you’re not sure and you think you need advice and then see how the advisor treats you/what they say to you. Should give you a good sense of what’s up.

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Catchthedisc OP t1_j6kla3w wrote

Ah, great idea. Thanks.

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spillionaire t1_j6myodg wrote

Customer service doesn’t necessarily equal good value when it comes to funds…

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Starrion t1_j6l9d5y wrote

Managed funds usually exist to make the managers money.

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DomDaddy1971 t1_j6k0phh wrote

The only thing that matters in investing is your post-fees, post-tax returns. Anything else is deceiving.

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Catchthedisc OP t1_j6k1362 wrote

Thank you, this is a good reminder. I am going to look at my statement and see the how the fees are impacting the return.

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biscuitlover0 t1_j6jz9c6 wrote

Does it matter if you're looking at the after charge return?

Some funds are worth it and some arent.. the index fund is simple because it just follows a pattern. If the underlying index does ok an index fund will be fine..

Active funds can do better but they're more hands on to manage and monitor..

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