Administrative costs are the costs a mutual fund incurs for day-to-day operations, such as record-keeping, mailings, and maintaining a customer-service line.
These are all necessary costs, but they vary in size from fund to fund. The thriftiest funds can keep these costs below 0.20% of fund assets, while the ones that use engraved paper, colorful graphics, and phone operators with highfalutin accents might fail to keep administrative costs below 0.40% of fund assets.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- Why Republic Airways Holdings Inc. Stock Flew 10% Higher
- Why VIVUS, Inc. Is Today's Best Biotech Stock
- Why a Major E-Cigarette Company Is Lobbying for More Regulation
- 3 Reasons General Motors Company Stock Could Rise
- Boeing and SpaceX Win NASA Commercial Crew Contracts... but Did Boeing Still Beat SpaceX?
- 5 Things Men's Wearhouse's Management Wants You to Know