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
- Pursuing Profits? Meet Margins!
- The One Thing Pfizer, Inc. Shareholders Should Worry About, and One They Shouldn't
- A Sad Reality: 3 of Healthcare's Top 5 Dividends Probably Aren't Sustainable
- Amgen, Inc. Earnings: 1 Sentence That Tells You Everything You Need to Know
- Caterpillar Inc. Earnings and Outlook Indicate Big Trouble Ahead
- 3 Things to Watch with Align Technology, Inc. Q4 Results