If a mutual fund (in this case it's index fund) increased its subscription and management fee,?

Question

what does it mean ? Is it normal or bad sign ? The fees were increased about 2 years after the product launch. Appreciate a prompt enlightenment :).

Thankyou.

Answer 1

It means you will make less money, because the mutual fund will keep more of it. Over the course of time, even 1% adds up. If you wish to save money, look for an ETF with the same sort of profile. The ETF trades like a stock, so you can buy and sell shares without waiting until the end of the day to get out of your position. Additionally, the fee structures on ETF's are generally less than on mutual funds. Often, funds have a discounted fee schedule the first year or two after they launch, to encourage investors to try out "the new kid on the block". Good luck to you.