Types of Fees in Mutual Funds and Cheapest Types of Investment
Mutual funds are one of the easiest and cheapest types of investment instruments. The interest in these mutual funds is indeed getting higher and increasing from year to year. In the mutual fund itself, there are many investment categories that you can later adjust to your wishes and needs as an investor.
For example, here are stock mutual funds, conventional mutual funds, sharia, capital markets and mixed. But did you know that apart from that, Mutual Funds have also been subdivided into several other categories, such as closed Mutual Funds and Open Mutual Funds. Mutual funds are perfect for those of you who like to be financially insecure because they are very transparent.
Where later investors can see the investment value recorded in the portfolio. In addition, by having a fairly affordable capital of only around Rp. 100, later you as an investor can still have a portfolio that has been identified as stocks and bonds.
But behind all the advantages like other financial products, Mutual Funds are not 100% free here, but there are several costs that need to be borne and paid, both by the customer and the mutual fund. To find out more about the costs that need to be borne, then you need to read the review below.
What are the Costs in Mutual Funds?
In investing in mutual funds, there are several types of costs. These include:
Fees Charged on Mutual Funds
The fees charged to mutual funds where the net asset value of each unit of participation which is usually used as a reference for investors as the price for a mutual fund is the price which has been deducted by these costs.
So later on, investors will not directly pay these costs because it has been included in the price of the net asset value of the mutual fund. Here is a list of the fees used in mutual funds that you need to know.
- Cost of preparing financial reports
- Custodian bank fees
- Fee for accountants and legal consultants
- Investment manager fees
- Securities transaction fees
- Expenses for urgent needs for mutual fund purposes
- Prospectus renewal & distribution costs
These costs are included in the calculation of the NAV of each mutual fund unit. Therefore, investors often do not know the amount of the fees charged. To be able to find out the percentage of the fees paid by the mutual fund, the total assets can be seen in the mutual fund’s financial statements and the mutual fund’s fund fact sheet.
Fees Charged on Investors
The next cost in mutual funds is the fee which is charged to investors here. This fee is what investors will need to pay in mutual fund investments. The fees paid by investors are fees which here are related to buying and selling transactions in the mutual fund itself. The following is a list of costs borne by investors.
- Cost of resale of investment units
- Bank transfer fees related to transactions
- Cost of purchasing a unit
- Unit switching costs
So it is necessary for you to remember that products from Mutual Funds have different policies in terms of buying and selling financing. There are only certain products which here charge a selling fee, while the purchase fee itself is free. There are certain products that use buying and selling costs.