E*Trade offers some mutual fund trades with No Load & No Transaction fee's. Are there any hidden costs? Or down the road when I pull my money out can I be assured that I am privy to all the money and there are no extra fees?

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    Well, E.Trade might change its fee structure in the future and start charging for selling your mutual fund shares, or the mutual fund may be charging redemption fees for early withdrawals. For example, several Vanguard funds charge a 1% fee if shares are sold within 12 months of purchase. The Vanguard funds that you own might not have such fees now, but may institute such fees in the future. E*Trade will pass these fees on to you. Nov 15, 2014 at 4:34

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You do realize that the fund will have management expenses that are likely already factored into the NAV and that when you sell, the NAV will not yet be known, right? There are often fees to run a mutual fund that may be taken as part of managing the fund that are already factored into the Net Asset Value(NAV) of the shares that would be my caution as well as possible fee changes as Dilip Sarwate notes in a comment.

Expense ratios are standard for mutual funds, yes. Individual stocks that represent corporations not structured as a mutual fund don't declare a ratio of how much are their costs, e.g. Apple or Google may well invest in numerous other companies but the costs of making those investments won't be well detailed though these companies do have non-investment operations of course. Don't forget to read the fund's prospectus as sometimes a fund will have other fees like account maintenance fees that may be taken out of distributions as well as being aware of how taxes will be handled as you don't specify what kind of account these purchases are being done using.

  • Thank you, I am just learning. So I just read that is also an Expense Ratio which come out of your stock every year. Are Expense Ratios pretty much a standard for all stocks?
    – Trevor
    Nov 15, 2014 at 5:54

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