As mutual funds continue to grow, more funds are charging lower fees to investors, and some industry watchers say it's about time, USA Today reports.
In 2004, 2,830 mutual funds cut the fees they charge investors, representing an increase of 355% from 622 in 2003, according to
"It's like your doctor telling you he's going to start taking your blood pressure," said Roy Weitz, of
The median fee charged by equity mutual funds also dropped in 2004 to 1.45% of assets, compared to 1.5% in 2003. During the same period, sector funds cut management expenses from 1.89% of assets in 2003 to 1.78% in 2004, according to Lipper.
In part, Lipper attributes the industry-wide drop in costs to the trading scandal of 2003. That year, giants
By October, mutual fund assets swelled to $8.5 trillion, compared to $8.1 trillion in December 2004, and only $7.4 trillion the year before that, according to the