Oct. 8, 2002 — The cost to shareholders of investing mutual funds continued to fall between 1998 and 2001.
According to research from the Investment Company Institute, the total cost of investing in equity mutual funds decreased about 5% between 1998 and 2001, and by 43% since 1980.
The cost of investing in bond and money-market funds also continued to fall, the ICI found. The costs of investing in bond funds fell by 17% from 1998 to 2001, and by 41% since 1980, while the costs of investing in money funds fell by 14% and 35% in those respective periods.
The study found that the decline in total shareholder cost in equity funds largely reflected a continuation of the downward trend in distribution cost, which is the component of total cost that primarily represents compensation to sales professionals for advice and service.