Costs & Fees
Fee Drag
Definition
What is Fee Drag?
The reduction in investment growth caused by fees and expenses over time.
Example in practice
How This Looks in Practice
A 2% yearly fee materially lowers a 20-year ending value.
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Related Terms
Costs & Fees
Management Fee
The recurring fee paid from fund assets to the fund manager for managing the portfolio.
Costs & FeesExpense Ratio
A fund's annual operating expenses expressed as a percentage of its average net assets.
Costs & FeesEntry Load
A charge deducted when an investor subscribes to a fund.
Plans & OptionsAccumulation Option
A fund option that retains or reinvests income so it contributes to unit-value growth.