It is time to get real about mutual fund commissions. At 1% or more, add the upfront trail commissions, the cost is too high and needlessly gives away most of your expected gains. You must consider your gains in real, after-inflation returns. If your investment doesn’t grow more than inflation then you are losing money!
The world is entering a phase of moderate growth. Already markets are considered overvalued. If a growth of 10% is projected for an equity mutual fund, then please remember that this is before all sorts of fees and taxes. [See an illustration]
The best way out of this is to select a direct mutual fund that charges low fees. The long term wealth generating portfolios that we review are usually low cost and simple. So, keep it simple and get real about commissions.