Assignment Chapter 13 Investing in Mutual Funds, ETFs, and Real Estate Understanding the Costs Involved in Mutual Fund Investments Lorenzo is debating purchasing a mutual fund, but he has some questions for his financial advisor, Nehn. The following table presents Information on four different open-end mutual funds that Lorenzo and Neha are discussing. Use the information in the table to answer the questions that follow, NET CHG FUND GibExp NAV 13.32 YTD % RET 3.1 0.04 0.14 6.0 IntRA MRGG 20.77 29.31 0.20 TopLA 44.21 0.37 9.6 LORENZO: After some research, I've narrowed it down to these four funds, but can you explain to me the relationship between 126-1 fees and fund performance? outperform funds that do not charge these fees NEHA: Generally, funds that charge 12b-1 fees, such as GbEx P. LORENZO: What about front-end load fees? For example, suppose TopLA has a front-end load fee of 7%, when do I pay this fee? 12:10 opel vestuaruhuset LORENZO: After some research, I've narrowed it down to these four funds, but can you explain to me the relationship between 12b-1 foes and fund performance? NEHA: Generally, funds that charge 125-1 fees, such as GibEx P. outperform funds that do not charge these fees LORENZO: What about front-end load fees? For example, suppose Topla has a front-end lood fee of 7%, when do I pay this fee? but when you sell these shares you NEHA: If you purchase 100 shares of this fund at the NAV, you will pay a commission of S in front-end fees. will pay s LORENZO: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? 96 in back-end load NEHA: If a fund charges a 2.5% front-end load and a 4% 12-bi fee, then it can charge a maximum of only charges without violating the cap, funds whenever possible. LORENZO: Thanks! This was really helpful. So it sounds like you'd recommend looking for 21 Assignment Chapter 13 Investing in Mutual Funds, ETFs, and Real Estate Understanding the Costs Involved in Mutual Fund Investments Lorenzo is debating purchasing a mutual fund, but he has some questions for his financial advisor, Nehn. The following table presents Information on four different open-end mutual funds that Lorenzo and Neha are discussing. Use the information in the table to answer the questions that follow, NET CHG FUND GibExp NAV 13.32 YTD % RET 3.1 0.04 0.14 6.0 IntRA MRGG 20.77 29.31 0.20 TopLA 44.21 0.37 9.6 LORENZO: After some research, I've narrowed it down to these four funds, but can you explain to me the relationship between 126-1 fees and fund performance? outperform funds that do not charge these fees NEHA: Generally, funds that charge 12b-1 fees, such as GbEx P. LORENZO: What about front-end load fees? For example, suppose TopLA has a front-end load fee of 7%, when do I pay this fee? 12:10 opel vestuaruhuset LORENZO: After some research, I've narrowed it down to these four funds, but can you explain to me the relationship between 12b-1 foes and fund performance? NEHA: Generally, funds that charge 125-1 fees, such as GibEx P. outperform funds that do not charge these fees LORENZO: What about front-end load fees? For example, suppose Topla has a front-end lood fee of 7%, when do I pay this fee? but when you sell these shares you NEHA: If you purchase 100 shares of this fund at the NAV, you will pay a commission of S in front-end fees. will pay s LORENZO: It sounds like these fees could start to add up. What's the most I can expect to pay in fees? 96 in back-end load NEHA: If a fund charges a 2.5% front-end load and a 4% 12-bi fee, then it can charge a maximum of only charges without violating the cap, funds whenever possible. LORENZO: Thanks! This was really helpful. So it sounds like you'd recommend looking for 21
