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You will invest $20,000 and you are trying to choose between three funds, all promising a 10% annual return.

Fund I charges an annual management fee of 1% and a front load of 5%. Fund II charges an annual management fee of 1% and a back load of 9% that declines down to zero by 0.5% for every year you hold your money in the fund.

Fund III charges an annual management fee of 1.5% without any front or back load.

Which fund is the better option if you are investing over a horizon of (a) 5-years and (b) 10-years?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92775148

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