Timeline for Understanding yield, dividend, expense ratio and others related terms in a mutual fund
Current License: CC BY-SA 4.0
11 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Jan 15, 2020 at 22:06 | history | edited | D Stanley | CC BY-SA 4.0 |
deleted 41 characters in body
|
| Jan 15, 2020 at 22:04 | comment | added | D Stanley | @RonJohn You and Bob are right I had it backwards. I have always thought of it as a commission on top of the investment. Honestly the result isn't that much different but I'll amend my answer. | |
| Jan 15, 2020 at 21:57 | comment | added | Bob Baerker | You may have gotten RonJohn but you lost me. If they take out 4.5% as a front load charge, $955 of $1,000 is invested. From everything that I've have ever seen, the sales load comes off the top. | |
| Jan 15, 2020 at 20:33 | comment | added | RonJohn | Right... understood. | |
| Jan 15, 2020 at 20:31 | comment | added | D Stanley | @RonJohn The premise was that OP has $1,000 to invest. The 4.5% fee is added on to the actual invested amount, so $957 * 1.045 = 1,000. Normally you'd buy X of the fund and pay X*(1+fee), so the math in this case is inverted. Alternatively you could invest $1,000 and pay $1,045 for the shares. | |
| Jan 15, 2020 at 20:28 | comment | added | RonJohn |
Why $1000 / 1.045 instead of $1000 * (1 - 4.5%)?
|
|
| Jan 15, 2020 at 20:26 | history | edited | D Stanley | CC BY-SA 4.0 |
added 42 characters in body
|
| Jan 15, 2020 at 20:24 | comment | added | D Stanley |
@RonJohn 1000 / 1.045 = 957 (OP uses a fee of 4.5% in the example).
|
|
| Jan 15, 2020 at 20:22 | comment | added | RonJohn |
Where does the $957 come from? $1000 * (1 - 5.75%) = $942.50.
|
|
| Jan 15, 2020 at 20:20 | history | edited | D Stanley | CC BY-SA 4.0 |
added 227 characters in body
|
| Jan 15, 2020 at 20:14 | history | answered | D Stanley | CC BY-SA 4.0 |