SINGAPORE (Sept 16): Diminutive funds with sky-high expense ratios and dismal long-term performance should be dumped, say fund experts. 

Indeed, extensive research has shown that investment funds with high expense ratios tend to have a return disadvantage over those with lower such ratios. The reason is simple — costs and expenses generally eat into investment returns.

And the connection, according to widely-documented academic studies, appears to be very direct. Just load up on the funds’ expenses and the average returns, as empirically observed, will decline.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook