The problem with investors is most of us don’t pay attention to costs. When investors choose to invest in regular mutual funds over direct mutual funds, they don’t care because the fee is deducted from the investment and they don’t have pay it like a subscription.
What we don’t know can’t hurt us right? If regular mutual funds worked differently, where an investor had to pay a commission desperately every month I am pretty sure that a vast majority of the investors would not choose to invest in them.
Coming to the question about costs, since the expense ratios of mutual funds are deducted from the investment, we don’t realize how much it costs us.
Here’s an amazing article which shows that shows the returns inf Warren Buffet had paid a 1% fee on his investment in Berkshire Hathway
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