Investors Consider Fund Fees, Performance When Making Purchases

Mutual fund investors on the whole are very savvy about fees, according to a survey by the Investment Company Institute (ICI). Based on data collected in mid-2017, ICI says 90% of mutual fund-owning households consider the fees and expenses of a fund, with 40% indicating that this information is “very important.”

Additionally, 90% of mutual fund-owning households consider the historical performance of a fund, with 50% saying this information is “very important.” Seventy-eight percent consider a fund’s performance compared to an index, with 35% saying this is “very important.”

Furthermore, 90% consider the fund’s investment objective as well as the risk level of the fund’s investments. Thirty-six percent say that each of these measures is “very important.”

“Mutual fund-owning households review many factors when choosing mutual funds to help them achieve their investment objectives, such as the fund’s fees and expenses, the historical performance of the fund and the risk level of the fund’s investments,” says Sarah Holden, senior director of retirement and investor research at the ICI. “By carefully considering these aspects of a fund, they are able to make informed choices and save and invest to meet their future financial goals.”

ICI conducted the telephone survey of 5,000 households from May to July 2017.