1

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/…. – Justin Cave 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? – user1723699 Sep 13 '19 at 14:22
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"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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