Registered Rep – Like hard-pressed retailers, investment managers have lately taken to lowering prices. Mutual funds and ETFs have cut expense ratios. Even exclusive hedge funds have reduced the fees they charge clients. Some of the fee cuts may be temporary measures aimed at attracting sales during the recession. But the trend toward lower expenses seems likely to continue. At a time when the Internet is making it easier to compare prices, investors are searching for bargains whenever they shop.
Of course, not all fund managers are cutting costs, which is widening the gap between what is low-cost and what is expensive. And that makes it increasingly important to shop hard for the cheapest funds.
