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Personal Finance

2006 a Winning Year for Mutual Funds

Wednesday, June 20, 2007 6:06:20 AM
By TIM PARADIS

NEW YORK (AP) - A surging stock market last year not only helped many mutual fund owners earn more but padded returns by pushing more investors into territory where they qualified for lower fund fees.

A study going back to 1980 found that mutual fund fees and expenses haven't been lower than they were last year.

Fees declined again in 2006, continuing a multiyear trend, as ever-larger investor portfolios triggered reduced load fees and as funds continued to tamp down expenses to boost their competitiveness. Many growing portfolios had smaller fees taken out because their size enabled them to receive discounts on large purchases as well as fee waivers. Overall, it seems investors had much to cheer about in 2006.


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