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Operating a Fund Fees & Expenses Pioneer Fund charges a 12b-1 fee of 1.0% and maintains an expense ratio of 0.75%. Preserver Fund charges a
Operating a Fund Fees & Expenses
Pioneer Fund charges a 12b-1 fee of 1.0% and maintains an expense ratio of 0.75%.
Preserver Fund charges a front-end load of 2% and an expense ratio of 0.25% but no 12b-1 fee.
Assume the rate of return on both funds portfolios (before any fee) is 6% per year. How much will an investment of $100 in each fund grow to after?
(a). 1 year;
(b). 3 years;
(c). 10 years;
(d). which fee structure design attracts the long-term clients?
can i have more calculation details or reasons? thanks!
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