Fi­delity cut­ting fees at 8 in­dex mu­tual funds

Austin American-Statesman - - BUSINESS -

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.

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