Mutual funds typically carry a front load (sales commission). In general it is up to 5% of the investment.
Exchange traded funds (ETFs) - on the other hand - are traded on the stock exchange. This triggers transaction fees and broker commission.
Recurring investment cost
The following cost per annum in % are normally charged by mutual funds, so called total expense ratio (TER).
Transaction fees within the funds are disregarded. In addition, mutual funds recently tend to impose performance-related fees which come on top.
Exchange Traded Funds
In all calculations taxes as well as performance-related fees are not included.
Also transactions fees within funds are not included.
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