Host: What mutual fund fees are normal?

David Morotta: All mutual fund companies have fees but some mutual fund companies have higher fees than others. Sometime it s a higher fee because they are an actively traded fund and there is lots of buying and selling that is going on. Sometimes it is an index fund, so they do not have make many decisions and there is very little buying and selling, in which case the fees are lower.

Low expenses ratios will be 1% or less. Very low will be a half of a percent or less and the lowest mutual funds will have 0.

1% or 0.

2%. So, you can get for the very well managed large funds, you can get to your expense ratios down. We recommend keeping expense ratio on your portfolio as a whole under a half percent.

That may mean that some of your sand has an expense ratio of 1% but your rocks are very, very low which is your bigger part of your portfolio. Foreign mutual funds will have higher cost. So, foreign mutual funds might be 1.

2% or 1.

4%, a bond fund might have lower expense ratios.