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
- The Last 2 Airline Stocks Trading Below Book Value
- Should GoPro Stock Investors Be Concerned About HTC?s New Camera?
- Is It Time to Buy Men's Wearhouse Stock?
- Main Street Capital Corporation Stock Joins an Exclusive Club
- 14% of People Failed this Simple Social Security Quiz
- Is Support for Legal Marijuana Shrinking?