The Tyranny of Compounding Fees: Are Mutual Funds Bleeding Retirement Accounts Dry?

Neuteld, Stewart
December 2011
Journal of Financial Planning;Dec2011, Vol. 24 Issue 12, p60
Academic Journal
The article presents a study which examines how stock market returns are shared between financial service industry and mutual fund investors using various time frames for several lags in fund returns. The study used the Standard & Poor (S&P) 500 market index to demonstrate the stock market returns. It states that a performance lag varies the proportions going to the industry and investor. It considers the growth of retirement account assets and the effect of mutual fund underperformance accumulated. Moreover, it presents several graphs which illustrate the market losses and gains of financial service industry and investors.


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