No Performance Track Record Thematic without enough Diversification Average Fund
Manager High Expense Ratio Close Ended — No Liquidity
Not exact matches
In the long run,
high expense ratios are difficult for portfolio
managers to overcome, particularly for funds with lower risk, less aggressive investment objectives.
Long / short
managers tend to have
higher than average
expense ratios and trade more frequently.
Mutual funds charge annual fees regardless of the fund's performance, and the
higher a fund's
expense ratio, the more the mutual fund
manager must outperform the market to offer investors a better return than low - cost, index - tracking funds which are not actively managed and have fewer operating
expenses.
While the AMC is free to charge what it wants, what makes the
managers feel they deserve this
high an
expense ratio.
As per research, most of the Debt Mutual Fund
Managers of categories like Monthly Income Plan (MIP), Income Funds, Gilt Funds, Dynamic Bond Funds etc. who charge
high Expense Ratio are not able to generate enough Alpha or extra return by active management to compensate for the higher expense ratio charged by th
Expense Ratio are not able to generate enough Alpha or extra return by active management to compensate for the higher expense ratio charged by the
Ratio are not able to generate enough Alpha or extra return by active management to compensate for the
higher expense ratio charged by th
expense ratio charged by the
ratio charged by the fund.
Because mutual funds are actively managed by one or even several investment
managers, the
expense ratio of these funds can be
high.
Actively managed funds have much
higher expense ratios because of the increased work required of the fund's
manager.
Funds with
higher portfolio turnover rates (meaning the
manager buys and sells more often) or funds that invest in less liquid securities (like micro-caps for example) will have
higher Trading
expense ratios.
The
expense ratio could eat up every bit of a fund's yield, or the
manager might decide to gun for
higher - yielding (and often
higher - risk) stocks to offset the fund's built - in
expense disadvantage.