Fidelity cutting fees at 8 index mutual funds
Fidelity Investments is trimming fees at its largest index mutual funds and making some of its lowest-cost options accessible to a larger number of fund shareholders, including those with as little as $2,500 to invest.
The moves announced Tuesday follow recent investment fee cuts involving mutual funds or exchange-traded funds at rivals such as Vanguard, BlackRock and Charles Schwab. Fidelity’s moves affect mutual funds holding about $100 billion in assets, out of about $1.6 billion that the Boston-based company manages overall.
These involve index funds, low-cost options that seek to match performance of a basket of stocks or bonds. Fees are unchanged at Fidelity’s hundreds of actively managed funds, which seek to beat the market. Investment management fees are typically lower at index funds because investors aren’t paying managers to pick investments.