Investors not only need to consider diversification, they must also consider what their investments are costing them.
Investors not only need to consider diversification, they must also consider what their investments are costing them. “Fees” they’re called, and they’re like the termites of investing — always eating and never satisfied. Actively managed mutual funds have what’s called a management expense ratio, or MER, which is the percentage of the entire fund that the mutual fund company assesses annually to pay its managers, support staff, for advertising, rent, and about anything else you could think of.