Expense Ratio?

Question

I'm considering putting some of my money to buy mutual funds. How do i know the fees? Also, it has a expense ratio of 1.36%.(AMAGX)

Answer 1

The expense ratio is the only source of fees with this fund other than the taxes on year end distributions.  The expense ratio is about average for mutual funds. But there are funds with much lower expense ratios also.  

This fund is a good fund, but realize it is a growth fund.  They can tank badly in a bear market.

Answer 2

The expense ratio you mentioned is the total annual fee the managers will charge you. But there could also be a front or back load, so do ask. In UK we pay much higher charges.

Bear in mind that past performance is not a guide to future performance and  charges of  1.36%pa will take 32% of your fund in 30 years and 40% in 40 years.