Some financial advisors say the expense ratio given for any mutual fund in (IRA accounts)is nominal and that does not include my share of the funds transaction cost. There are transaction costs that are not stated as expense. The question is What is the truth or what is the true expense?
For example if I owned $30,000 worth of PRSCX
The transaction cost is $ 219 (.73%) + fund management expense (1.03%) for a total expense of 1.76% and not not the 1% cost as advertised by TROWE Price * Per $10,000 invested , see below:
FEES & EXPENSES
Expense PRSCX Category Avg
Total Expense Ratio: 1.00% 1.84%
Max 12b1 Fee: 0.00% N/A
Max Front End Sales Load: 0.00% 5.16%
Max Deferred Sales Load: 0.00% 2.72%
3 Yr Expense Projection*: $318 $824
5 Yr Expense Projection*: $552 $1,287
10 Yr Expense Projection*: $1,225 $2,518
2007-02-17
03:18:38
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1 answers
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asked by
Manoharan A
1
in
Personal Finance