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.
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