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So if a stock has a mgmt fee of 1.06% and an expense ratio of 1.24, does that mean im paying 2.3% in expenses? |
So on a $10k investment i'm paying $230 Correction not a stock, a mutual fund. No, you're paying 1.24% but of that 1.24% 1.06% is the management fee and 0.18% is other expenses which includes trading commissions and other direct expenses. Stocks don't have "management fees", so you are being scammed somehow, or have misunderstood or been misled by something somebody said. The management fee is included in the expense ratio. |
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