Really feel like I should know this, but I'm really (finally!) wondering how the various fees are disclosed, which ones are reported on monthly/annual statements, and when/how they kick in. (If there's a thread on this already, feel free to point me there).
For the sake of argument - here's a very simplified snapshot:
- A large mutual fund company - not (yet!) Vanguard - and I annually contribute the max/$6500 (the over age 50 contribution limit) in monthly contributions.
- Let's say the current balance is $40,000 evenly spread between four different no-load mutual funds.
- "Buy and hold"-style investor - but does it matter if one hops in and out of (no load) funds?
- Annual returns typically are between 5-8% per fund - some years some of the funds do better.
- Expense ratios on the four funds are .76, .48, .39, and .57
- The 2017 Annual Investment report on this account says only $16 was paid in "subtractions/transaction costs/fees/charges" fees for 2017 - how can this be? If there was 10K in the one fund charging a .76 expense - didn't I pay them 76.00 on this fund alone for 2017? (And thus, $48, $39, and $57, respectively?)
- So - where/how did this firm take out the expenses? Any light anyone can shed on this would be appreciated- thanks!