Mutual fund wants to get 1% upfront fee (US) plus an annual fixed fee. Is that within acceptable ranges for a managed bonds fund?

  • "Acceptable" is pretty subjective. I'd personally be really hard-pressed to justify paying any front end fees. If it's a long-term investment and the front-end fee buys you a sufficiently lower expense ratio, though, it might be worth it. Most funds that have a Class A option (a fund with a front-end fee) have other classes that don't have that fee (though they'd generally have higher fees elsewhere). investopedia.com/articles/mutualfund/05/…. Sep 13 '19 at 2:47
  • What could you gain from this mutual fund that you couldn't from the myriad of funds with no upfront fee as well as low annual fees? Sep 13 '19 at 14:22

"Front loaded" (and the inverse "back loaded") Mutual funds used to be very common. They were mostly replaced in the 1980s by no-load mutual funds from places like Vanguard.

I've got a managed no-load bond fund through Vanguard, and it's management fee is 0.09%. According to its web site, the average management fee for similar funds is 0.74%.

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