Firms Slash Fees

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Mutual fund companies have long boasted about the performance of their offerings. But, in today’s volatile market, they’re touting something else to win investors: low fees, the Los Angeles Times reports.


That’s a message Wayne Redfearn can get behind. The Newport Beach business owner has been investing aggressively in an effort to finance his young children’s college education and his own retirement. The more you have invested, the more fees matter, he said.


He chose his mutual fund company, American Funds, in part because its recurring fees were low, despite upfront sales charges. Recent 10% fee cuts by the Los Angeles-based firm have given him more to cheer about. For a portfolio of U.S. stocks, he now pays an annual management fee of 0.56% of his assets in the fund, compared with an average charge of 1.4% for such funds, according to researcher Morningstar Inc.


Read the full L.A. Times story

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