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re: Investing Advice for a Noob

Posted on 2/1/13 at 6:18 pm to
Posted by Teddy Ruxpin
Member since Oct 2006
39617 posts
Posted on 2/1/13 at 6:18 pm to
quote:

I used Morningstar because it's non-biased and shows the actual returns, not the assumed returns.


I tried to use MOrningstar too, but all I see is returns. No where do I see them tell you how much you had in costs. They just label expense ratio and are done with it. Or how much turnover in the fund cost them. Those funds had 28%, that has to incur some costs. Maybe I'm looking at it wrong.
This post was edited on 2/1/13 at 6:19 pm
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
69946 posts
Posted on 2/1/13 at 6:39 pm to
quote:

I tried to use MOrningstar too, but all I see is returns. No where do I see them tell you how much you had in costs. They just label expense ratio and are done with it. Or how much turnover in the fund cost them. Those funds had 28%, that has to incur some costs. Maybe I'm looking at it wrong.



The quotes on Morningstar comparison charts include expenses and fees in their total return. For example:

Going back to the VFINX fund's inception in 1976 through today, a $10,000 investment would be worth $368,692.70.

Compare that to AGTHX in the same exact time period, that same $10,000 investment would be worth, WAIT.........FOR.........IT, $1,155,560.60.


Now, I'd be happy to pay the additional fees for the additional return of almost $800,000. Wouldn't you?
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