Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ultra OTC Fund - UOPIX -- Ignore unavailable to you. Want to Upgrade?

To: John who wrote (1118)	1/4/2001 2:44:56 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 2063

Hi John, Those annual fees are "stealth" fees typical of mutual funds. It accounts as a real annual drop in Net Asset Value during the course of the year. It doesn't show up on any statement and isn't deductible on your tax forms either (to my knowledge). In a flat market, a No Load with a high annual fee might be as expensive as a Low Load fund with a very cheap annual fee. Best is No Load with very low annual fees! In the early days of Sector Funds, there were some amazingly high annual fees (2.5%/year) along with the usual commission front end loads. They are worth watching in more typically moderate markets or in down trending markets. Best regards, Tom Best regards, Tom

To: John who wrote (1118)	1/4/2001 5:13:35 PM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 2063

Hi John, There are two places where you will "see" those fees. The first place is in the prospectus where they are defined. I don't think 10% of the people who invest in Mutual Funds read or understand the prostpectus. Secondly they are removed from the Net Asset Value every day before the NAV of the fund is calculated. Assume that the fund has total Net Assets worth 500 million dollars at the end of the day . $25,094.34 is removed from that fund before the NAV is calculated. The remainder is divided by the total number of shares to get the NAV for the customers. This happens every day regardless of whether the fund goes up or down. They are not deducted from your account they are deducted from the entire fund. The fund gets their money rain or shine. Bernie PS the calculation presented here is based on UOPIX's 1.33% expense ratio which is slightly above average.