Costs & Fees
Fee Drag
Definition
What is Fee Drag?
The reduction in investmentAn asset or commitment of money made with the expectation of future income, growth, or both. 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.