This is an interesting study, in Canada many, (the average mutual fund) has an mer of around 2.50%, some more some less, this chart below is interesting at how much you get as an investor with a .5% mer compared to a 2.5% mer may seem like a small amount but the amount of compounding reallly kicks in...
also the 5% projected return is probably what the equity indexes can be expected (hope) to deliver, the days of 10% are probably in the past...so 5% (volatile).
thanks
selkirk
ETF Exchange Traded Funds
The CLC spells out exactly what various management fees do to an investment. The organization shows what happens to an initial investment of $10,000 at a 5-per-cent annual compounded rate of return once various management fees are attached.
Take the low 0.5 per cent management fee on a $10,000 investment:
After 10 years:
The investor has $15,570.43; the money manager, $718.51
After 45 years:
The investor has $72,066.60; the money manager, $17,783.48
Compare that to a high, 2.5-per-cent management fee on a $10,00 investment at the same rate of return:
After 10 years:
The investor has $12,969.84; the money manager, $3,319.11.
And 45 years:
The investor has $29,493.18; the money manager, $60,356.90.
also the 5% projected return is probably what the equity indexes can be expected (hope) to deliver, the days of 10% are probably in the past...so 5% (volatile).
thanks
selkirk
ETF Exchange Traded Funds
The CLC spells out exactly what various management fees do to an investment. The organization shows what happens to an initial investment of $10,000 at a 5-per-cent annual compounded rate of return once various management fees are attached.
Take the low 0.5 per cent management fee on a $10,000 investment:
After 10 years:
The investor has $15,570.43; the money manager, $718.51
After 45 years:
The investor has $72,066.60; the money manager, $17,783.48
Compare that to a high, 2.5-per-cent management fee on a $10,00 investment at the same rate of return:
After 10 years:
The investor has $12,969.84; the money manager, $3,319.11.
And 45 years:
The investor has $29,493.18; the money manager, $60,356.90.
