The total shareholder costs of owning a mutual fund have decreased in recent years due to a reduction in distribution costs, and due to economies of scale in other fund expenses.

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Quizplus · Accepted Answer

This statement is true. The reduction in distribution costs, such as sales commissions and advertising expenses, has helped to lower the overall costs for shareholders of mutual funds. Additionally, as the size of a fund grows, it may be able to take advantage of lower costs for things like administration, legal expenses, and investment management fees, which can further reduce the costs to shareholders.

The Total Shareholder Costs of Owning a Mutual Fund Have